Annual Report for the year ended 31 December 2009

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)
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)
SEC FORM 17-A
Form Type
Amendment Designation (if applicable)
December 31, 2009
Period Ended Date
(Secondary License Type and File Number)
SEC Number A200101631
PSE Code
File Number

DOCUMENTS INCORPORATED BY REFERENCE
Documents incorporated by reference in any part of this report:
2009 Audited 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 30
Item 3 Legal Proceedings 33
Item 4 Submission of Matters to a Vote of Security Holders 34
PART II OPERATIONAL AND FINANCIAL INFORMATION
Item 5 Market for Issuer’s Common Equity and Related Stockholder Matters 35
Item 6 Management’s Discussion and Analysis or Plan of Operation 39
Item 7 Financial Statements 49
Item 8 Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure
49
PART III CONTROL AND COMPENSATION INFORMATION
Item 9 Directors and Executive Officers of the Issuer 53
Item 10 Executive Compensation 66
Item 11 Security Ownership of Certain Beneficial Owners and Management 68
Item 12 Certain Relationships and Related Party Transactions 70
PART IV CORPORATE GOVERNANCE
Item 13 Corporate Governance 71
PART V EXHIBITS AND SCHEDULES
Item 14 a. Exhibit 76
b. Reports on SEC Form 17-C 76
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 27 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) Ltd., 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. 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. With its 30% indirect voting interest
through IAPL, I-Remit effectively owns 65.00% 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. 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 9,329,000 shares have been purchased and
lodged as treasury shares.
As of March 31, 2010, 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 158,418,225 158,418,225.00 28.64
Surewell Equities, Inc. Filipino 122,043,900 122,043,900.00 22.07
JTKC Equities, Inc. Filipino 106,010,225 106,010,225.00 19.17
JPSA Global Services Co. Filipino 20,340,650 20,340,650.00 3.68
Public Various 146,275,000 146,275,000.00 26.44
Total, March 31, 2010 553,088,000 553,088,000.00 100.00
The Company’s general expansion plans in 2010 include the opening of new and/or additional
offices or the engagement of new tie-ups and partners in Australia, Canada, Italy, Ireland,
Macau, Saudi Arabia, and Switzerland.

(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, as well as 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. 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.
I-Remit Australia Pty Ltd, a wholly-owned subsidiary, is a registered company under the
Australian Corporations Act 2001. 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 tie-ups 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.
IRemit Global Remittance Limited, a wholly-owned subsidiary, is a private limited
company in the United Kingdom and Wales (with company number 04239974) that was
incorporated on June 22, 2001. 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.
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. 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 whose principal activity is the provision of
remittance services under the Companies Ordinance of Hong Kong. It was the first
international branch of I-Remit and, to date, it has three (3) branches in Hong Kong at
the Central District, the Admiralty, and 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.
6

Power Star Asia Group Limited is a company incorporated in Hong Kong that 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 its foreign
exchange activities to a company located in one of the regional financial centers in
Asia.
Worldwide Exchange Pty Ltd (consisting of direct voting interest of 35% and indirect
voting interest through I-Remit Australia Pty Ltd of 30%) was incorporated on
September 29, 2003 in Queensland, Australia. It started commercial operations in
September 2002. It currently has three (3) branches located in Blacktown and in
Liverpool in Sydney, New South Wales 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) (Company Reg. No. 200103087H) 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. 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. 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 59 member banks and subscribers and
almost 4,000 ATMs nationwide. Megalink has 19
member banks and 2,478 ATMs nationwide.
ExpressNet has seven (7) member banks and 2,213
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.
8

Notify-to-Pay Allows a beneficiary in the Philippines to pick-up a
remittance in any of I-Remit’s 5,228 pay-out stations
nationwide within 24 hours. These designated pay-out
stations number 1,773 in Metro Manila, 1,644 in the
rest of Luzon, 1,018 in the Visayas, and 793 in
Mindanao. I-Remit has tied-up with the following
institutions whose branches serve as pay-out stations:
Asiatrust Development Bank, Banco Filipino Savings
and Mortgage 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, Rural Bank of Malinao,
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.
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 8,600 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.
9

Auxiliary Services I-Remit is authorized to accept payments and/or
contributions or premiums 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.; and
Kabalikat ng OFW.
SMS (Short Message
Service) via Globe G-
Cash and Smart Padala
iRemit Direct Online
Remittance System
(iDOL)
10
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 2009 2008 2007
Asia-Pacific 33% 34% 34%
Europe 12% 13% 18%
Middle East 20% 21% 18%
North America 17% 15% 17%
Others 18% 17% 13%
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 2009 2008 2007
Asia-Pacific 43% 42% 42%
Europe 9% 10% 11%
Middle East 28% 28% 24%
North America 16% 15% 15%
Others 4% 5% 8%
Total 100% 100% 100%
11

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 27 countries and territories:
Asia Pacific Europe Middle East North America
Australia Austria Bahrain Bermuda
Brunei Greece Israel Canada
Hong Kong Ireland Jordan USA
Malaysia Italy Kuwait
Marshall Islands Spain Lebanon
New Zealand The Netherlands Qatar
Saipan United Kingdom Syria
Singapore United Arab Emirates
Taiwan
The following shows the number of branches or offices of I-Remit’s subsidiaries,
associates, partners and tie-ups as of December 31, 2009:
Region
Branches or
Offices of
Subsidiaries
and Associates
12
Agents of
Subsidiaries
and
Associates
Branches of
Partners and
Tie-Ups
Agents of
Tie-ups Total
Asia Pacific 9 61 48 57 175
Europe 2 10 7 0 19
Middle East 0 0 326 0 326
North America 4 83 0 0 87
Total 15 154 381 57 607
The Company’s general expansion plans in 2010 include the opening of new and/or
additional offices or the engagement of new tie-ups and partners in Australia, Canada,
Italy, Ireland, Macau, Saudi Arabia, and Switzerland.
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 8,600 ATMs of the member banks and subscribers of BancNet, Megalink, and
ExpressNet.

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 5,228 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.
There are other services planned for launching in 2010. 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.
13

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.
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 currently 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.
14

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.
15

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.
16

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 27 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 eight (8) 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.
The global financial and economic crisis has had devastating consequences for
national economies and workers in industrialized and developing countries. The
recession in the world’s biggest economies — including the United States, Western
Europe and East Asia — resulted in massive retrenchments. It was projected that
migrant workers of all nationalities will be drastically affected by the crisis. However,
OFWs remained relatively unaffected as the number of deployed workers continued to
increase. The total number of deployed overseas Filipino workers (OFWs) reached
1,284,133 in various host countries from January to November 2009, according to data
from the Philippine Overseas Employment Authorities (POEA). This is more than the
1,149,429 OFWs who went abroad in 2008 or an increase of 11.7 per cent.
The Bangko Sentral ng Pilipinas also reported that overseas Filipino remittances in
2009 reached USD 17.348 billion representing a 5.61% growth over the 2008
remittances of USD 16.426 billion.
As the global economy continues to recover, the Bangko Sentral ng Pilipinas is
forecasting a growth of 6% in OFW remittances in 2010.
17

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 Savings Bank), 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, Syria, 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.
18

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 have no expiration dates but 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 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.
19

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
20
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
21

Software / System,
Version Purpose
Microsoft Office – Small Software used in creating
Business
documents, files and
reports
Microsoft Windows
Server – Enterprise and
Standard Edition
Operating system used in
servers
22
Acquisition and
Effectivity
Version 2003,
acquired on October
31, 2005; version
2007, acquired on
November 20, 2008;
perpetual license
Version 2003,
acquired on October
31, 2005; additional
licenses acquired on
August 31, 2006,
September 30 &
October 31, 2007,
March 31 & October
31, 2008;
Version2008,
acquired February
27, 2009
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
License / Renewal of
Maintenance Service
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.

Employees
The Company has 345 employees including those directly employed by subsidiaries as
of December 31, 2009. These consist of 97 officers and 248 non-officers as follows:
No. of Employees (December 31, 2009)
Officers Non-Officers Total
Parent Company 67 159 226
Subsidiaries 30 89 119
Total 97 248 345
The Company projects no new additional personnel in 2010.
Type No. of Employees
Administrative 37
Finance 61
Information Technology 18
Sales and Marketing 75
Service and Operations 154
Total 345
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.
23

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.
24

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.
25

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.
26

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.
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.
27

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 471.
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), and European Union (EU) (Consolidated List of Persons,
Groups and Entities Subject to EU Financial Sanctions) 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.
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.
28

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.
29

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, Ortigas Center,
Pasig City. The contract of lease on one (1) condominium unit located at the New Divisoria Center
Condominium in Sta. Elena, Binondo, Manila was cancelled in May 2009.
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 with a term of three (3) years,
commencing on February 1, 2007 and ending on January 31, 2010, with a 10 percent escalation on
the aggregate current monthly rental on the 13 th and 25 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, has been given a rent-free period from
February 1, 2007 to March 15, 2007. At the start of the lease, for the use and occupancy of the
premises, the Company paid Oakridge Properties, Inc. the amount of PHP 450.00 per square meter
every month, exclusive of 12 percent EVAT (which is borne by I-Remit) or its equivalent monthly rental
of PHP89,865.00. Renewal of this contract was made for a period of two (2) years, commencing on
February 1, 2010 and expiring on January 31, 2012, with a monthly rental of PHP598.95 per square
meter or PHP119,610.32 and subject to a 10 percent escalation on the 13 th month of the lease term.
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 one (1) year,
commencing on December 1, 2008 and ending on November 30, 2009. 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
PHP660.00 per square meter or its equivalent monthly rental of PHP131,802.00. Renewal of this
contract was made for a period of two (2) years, commencing on December 1, 2009 and expiring on
November 30, 2011, with a 10 percent escalation on the 13th month of the lease term.
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, 2008 and
expiring on November 30, 2009. 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 PHP683.65 per
square meter or its equivalent monthly rental of PHP377,238.07. Renewal of this contract was made
for a period of two (2) years, commencing on December 1, 2009 and expiring on November 30, 2011,
with a 10 percent escalation on the 13th month of the lease term.
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 thirty
five (35) months, which commenced on February 1, 2006 and expires on January 31, 2009. Renewal
of this contract was made for a period of two (2) years, commencing on February 1, 2009 and expiring
on January 31, 2011, 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. I-Remit, as lessee, pays Oakridge Properties, Inc. the
amount of PHP532.40 per square meter every month or its equivalent rental of PHP106,320.28
monthly up to January 31, 2010. Thereafter, the rental escalated by 10 percent to PHP585.64 per
square meter every month or its equivalent rental of PHP116,952.31 monthly.
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.
30

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, 2008 and expiring on August 31, 2010.
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 Wynsum Realty Developer,
Inc. the rent on the condominium unit in the amount of PHP 115,762.50 every month and on the five
(5) parking spaces in the amount of PHP20,258.45 every month, both subject to an escalation rate of
5 percent on the second year. Starting September 1, 2009, the rental escalated by 5 percent to
PHP121,550.63 every month on the condominium unit and PHP21,271.40 every month on the five (5)
parking spaces. The rentals are exclusive of 12 percent value-added tax (VAT) which is for the
account of I-Remit.
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.
The lease on the condominium unit at the New Divisoria Center Condominium was cancelled in May
2009. It was covered by an operating lease agreement with a term of five (5) years, commencing on
October 1, 2008, and subject to an escalation rate of 10 percent yearly effective on the second year
up to the fifth year of the lease term. I-Remit, as lessee, paid Mary C. de Leon, Rhodora C. de Leon,
and Rosemary C. de Leon, in their capacity as heirs of the late Tomas Y. de Leon, the rent on the unit
in the amount of PHP100,000 every month, net of value-added tax and withholding tax.
31

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 89,865.00 3 Feb. 1, Jan. 31,
Discovery Centre Center, Pasig City
2007 2010
119,610.32 2 Feb. 1, Jan. 31,
2010 2012
Unit 2603, 26/F 25 ADB Avenue, Ortigas 199.70 131,802.00 2 Dec. 1, Nov. 30,
Discovery Centre Center, Pasig City
2009 2011
Unit 2604 & 2605, 25 ADB Avenue, Ortigas 551.80 377,238.07 2 Dec. 1, Nov. 30,
26/F Discovery
Centre
Center, Pasig City
2009 2011
Unit 2703, 27/F 25 ADB Avenue, Ortigas 199.70 106,320.28 2 Feb. 1, Jan. 31,
Discovery Centre Center, Pasig City
2009 2011
8/F Wynsum 22 F. Ortigas Jr. Road, 287.00 115,762.50 2 Sep. 1, Aug. 31,
Corporate Plaza Ortigas Center, Pasig
City
2008 2010
Five (5) parking 22 F. Ortigas Jr. Road, --- 20,258.45 2 Sep. 1, Aug. 31,
spaces, Wynsum Ortigas Center, Pasig
2008 2010
Corporate Plaza City
Ground Floor & Sta. Elena, Binondo, 155.59 100,000 5 Oct. 1, Sep. 30,
Mezzanine Floor, Manila
2008 2013
New Divisoria
(Cancelled
Center
in May
Condominium
2009)
Rent expense pertaining to the above leased office spaces by the Parent Company, from Oakridge
Properties, Wynsum Realty, and Sta. Elena Divisoria Condo, amounted to PHP11.11 million in 2009,
PHP9.48 million in 2008 and PHP7.07 million in 2007.
I-Remit has office sharing arrangements with Surewell Enterprises, Ltd. in Hong Kong and 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 PHP39.33 million, PHP32.53
million, and PHP30.15 million in 2009, 2008 and 2007, respectively.
32

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.
33

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.
34

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 2007 were as follows:
Quarter Ending Date High Low Close
Dec. 31, 2007 PHP 5.90 PHP 4.60 PHP 4.70
Quarter end stock price ranges for 2008 were as follows:
Quarter Ending Date High Low Close
Mar. 31, 2008 PHP 4.70 PHP 3.00 PHP 3.55
Jun. 30, 2008 PHP 3.55 PHP 2.50 PHP 3.00
Sep. 30, 2008 PHP 4.70 PHP 2.55 PHP 4.30
Dec. 31, 2008 PHP 5.00 PHP 3.25 PHP 4.95
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 4.90
The closing price of the Company’s common shares as of the latest practicable trading date,
i.e., April 13, 2010, is PHP 4.80 per share.
35

(2) Holders
There were fourteen (14) common shareholders of record as of December 31, 2009. Common
shares amounted to 562,417,000* as of December 31, 2009.
* Inclusive of 9,329,000 common shares purchased by the Company under its stock buy-back
program.
The top twenty (20) common shareholders as of December 31, 2009, 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 * 220,508,325 39.2073
2 Star Equities Inc. Filipino 158,418,225 28.1674
3 Surewell Equities, Inc. Filipino 122,043,900 21.6999
4 JTKC Equities, Inc. Filipino 43,428,450 7.7218
5 JPSA Global Services Co. Filipino 17,000,000 3.0227
6 PCD Nominee Corporation – Non-Filipino Foreign 987,000 0.1755
7 Solar Securities, Inc. Filipino 17,000 0.0030
8 GTS Insurance Brokers Inc. Filipino 5,000 0.0009
9 Cruz, Napoleon D. Sr. and/or Luisa I. Cruz Filipino 3,000 0.0005
10 Soriano, Victor Martin J. Filipino 2,000 0.0004
11 Ona, Edgardo V. Filipino 2,000 0.0004
12 Olayres, Norberto F. and/or Olayres, Felisa J. Filipino 1,000 0.0002
13 Hapi Iloilo Corporation Filipino 1,000 0.0002
14 Gaw, Gilbert C. Filipino 100 0.0000
Total ** 562,417,000 100.0000
* Inclusive of 62,581,775 lodged common shares held by JTKC Equities, Inc., thus, its total
shareholdings is 106,010,225 representing 18.8490% ownership.
** Inclusive of 9,329,000 common shares purchased by the Company under its stock buy-back
program.
There were fourteen (14) common shareholders of record as of March 31, 2010. Common
shares amounted to 562,417,000* as of March 31, 2010.
* Inclusive of 9,329,000 common shares purchased by the Company under its stock buy-back
program.
The top twenty (20) common shareholders as of March 31, 2010, 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 * 220,362,625 39.1814
2 Star Equities Inc. Filipino 158,418,225 28.1674
3 Surewell Equities, Inc. Filipino 122,043,900 21.6999
4 JTKC Equities, Inc. Filipino 43,428,450 7.7218
5 JPSA Global Services Co. Filipino 17,000,000 3.0227
6 PCD Nominee Corporation – Non-Filipino Foreign 1,147,700 0.2041
7 GTS Insurance Brokers Inc. Filipino 5,000 0.0009
8 Cruz, Napoleon D. Sr. and/or Luisa I. Cruz Filipino 3,000 0.0005
9 Soriano, Victor Martin J. Filipino 2,000 0.0004
10 Ona, Edgardo V. Filipino 2,000 0.0004
11 Simon, Dwight David M. and/or Corinne Jewel R. Simon Filipino 2,000 0.0004
12 Olayres, Norberto F. and/or Olayres, Felisa J. Filipino 1,000 0.0002
13 Hapi Iloilo Corporation Filipino 1,000 0.0002
14 Gaw, Gilbert C. Filipino 100 0.0000
Total ** 562,417,000 100.0000
* Inclusive of 62,581,775 lodged common shares held by JTKC Equities, Inc., thus, its total
shareholdings is 106,010,225 representing 18.8490% ownership.
** Inclusive of 9,329,000 common shares purchased by the Company under its stock buy-back
program.
36

(3) Dividends
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.
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.
Other than statutory limitations, there are no restrictions that prevent the Parent Company from
paying dividends on common equity.
37

(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
now stands at 553,088,000 shares from 552,279,900 shares. Issued capital stock still remains
at 562,417,000 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”).
38

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 2010 include the opening of offices or the
engagement of tie-ups and partners in Australia, Canada, Italy, Ireland, Macau, Saudi Arabia,
and Switzerland.
39

(2) Management’s Discussion and Analysis
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.
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.
40

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.
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
41

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
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
42

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
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.
43

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.
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
44

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
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 -
45

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 -
2007 compared to 2006
I-Remit realized a consolidated net income of PHP 113.3 million in 2007, an increase of PHP
70.8 million or 167% over the consolidated net income of PHP 42.5 million in 2006.
Revenues increased by PHP 203.0 million (57%) to PHP 561.8 million in 2007 from PHP
358.8 million in 2006 mainly due to the 35% increase in transaction count (from 1,383,843 in
2006 to 1,864,869 in 2007) and a 37% increase in USD remittance volume (from USD 555.6
million in 2006 to USD 762.3 million in 2007). Of the total transaction count in 2007, the
percentage contributions per region are as follows: Asia-Pacific, 42%; Middle East, 24%; North
America, 15%; Europe, 11%; and Others, 8%. In terms of USD remittance volume, the
regional contributions are as follows: Asia-Pacific, 34%; Europe and Middle East, 18% each;
North America, 17%; and Others, 13%. The Company’s market share in 2007 grew to 5.28%
from 4.35% in 2006 based on the BSP-reported figure of total inward remittances to the
Philippines of USD 14.45 billion. Accordingly, the Company’s gross income increased by PHP
172.8 million or 74% from PHP 233.6 million in 2006 to PHP 406.4 million in 2007.
Total operating expenses net of other income was higher by PHP 94.1 million (49%) from PHP
191.0 million in 2006 to PHP 285.1 million in 2007 mainly on account of higher salaries, wages
and employee benefits, and marketing expenses. Net other charges declined by 61% or PHP
12.1 million from PHP 19.7 million in 2006 to PHP 7.7 million in 2007 mainly due to higher
other income of subsidiaries such as rebates and sub-lease rental income.
The total assets of the Company increased by PHP 655.8 million or 88% to PHP 1.401 billion
as of December 31, 2007 against PHP 745.2 million as of the same period in 2006. Cash and
cash equivalents increased by PHP 321.4 million or 89% from PHP 360.3 million in 2006 to
PHP 681.7 million in 2007. Receivables increased by PHP 205.2 million or 60% from PHP
341.0 million in 2006 to PHP 546.2 million in 2007. Other current assets increased by PHP
1.2 million or 28% from PHP 4.1 million in 2006 to PHP 5.3 million in 2007 mainly because of
a higher level of prepaid expenses. Property and equipment increased by PHP 6.9 million or
56% from PHP 12.2 million in 2006 to PHP 19.1 million in 2007 due to investments in office
and communication equipment. The increase in goodwill of PHP 106.4 million to PHP 111.4
million in 2007 against only PHP 5.0 million in 2006 was a result of the acquisition of
subsidiaries, associates, and minority interests. Other noncurrent assets decreased by PHP
186,329 or 0.8% from PHP 22.7 million in 2006 to PHP 22.5 million in 2007.
Total liabilities declined by PHP 231.2 million or 42% from PHP 555.1 million in 2006 to PHP
323.9 million in 2007 mainly on account of a lower level of current liabilities. Current liabilities
declined by PHP 234.4 million or 42% from PHP 552.7 million in 2006 to PHP 318.4 million in
2007 due to the reduction in interest-earning loans by PHP 320.8 million or 65% from PHP
495.8 million in 2006 to PHP 175 million in 2007.
The Company’s stockholders’ equity as of December 31, 2007 stood at PHP 1.077 billion,
higher by PHP 887.0 million or 467% against the year-end 2006 level of PHP 190.1 million.
46

Below are the comparative key performance indicators of the Company (Parent Company and
subsidiaries):
Performance Indicator Definition Dec. 31, 2007 Dec. 31, 2006
Return on Equity (ROE)
Net income* over average stockholders’
equity during the period
21% 25%
Return on Assets
(ROA)
Net income* over average total assets
during the period
11% 7%
Earnings per Share
(EPS)
Net income* over average number of
outstanding shares
PHP 0.56 PHP 84.97
Sales Growth
Total transaction value in USD in present
year over previous year
37% 40%
Gross Income
Revenue less total cost of services (PHP
millions)
406.4 233.6
* 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, 2007 and for
the year ended December 31, 2006 are P 0.53 and P 83.42, respectively.
Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition Dec. 31, 2007 Dec. 31, 2006
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
99% -2%
Return on Assets
(ROA)
Net income over average total assets
during the period
7% -0.2%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
21.74 (0.31)
Sales Growth
Total transaction value in USD in present
year over previous year
74% 60%
Gross Income
Revenue less total cost of services (PHP
millions)
67.3 42.8
Lucky Star Management Limited
Performance Indicator Definition Dec. 31, 2007 Dec. 31, 2006
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
-48% 0.6%
Return on Assets
(ROA)
Net income over average total assets
during the period
23% -0.7%
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
11.78 (0.44)
Sales Growth
Total transaction value in USD in present
year over previous year
20% -0.6%
Gross Income
Revenue less total cost of services (PHP
millions)
19.6 14.5
IRemit Global Remittance Limited
Performance Indicator Definition Dec. 31, 2007 Dec. 31, 2006
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
33% -
Return on Assets
(ROA)
Net income over average total assets
during the period
1% -
Earnings per Share
(EPS)
Net income over average number of
outstanding shares
4,193.47 -
Sales Growth
Total transaction value in USD in present
year over previous year
- -
Gross Income
Revenue less total cost of services (PHP
millions)
43.6 -
47

I-Remit Australia Pty Ltd
Performance Indicator Definition Dec. 31, 2007 Dec. 31, 2006
Return on Equity (ROE)
Net income* over average stockholders’
equity during the period
98% -
Return on Assets
(ROA)
Net income* over average total assets
during the period
7% -
Earnings per Share
(EPS)
Net income* over average number of
outstanding shares
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)
0.3 -
Worldwide Exchange Pty Ltd
Performance Indicator Definition Dec. 31, 2007 Dec. 31, 2006
Return on Equity (ROE)
Net income over average stockholders’
equity during the period
58% -
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
77.14 -
Sales Growth
Total transaction value in USD in present
year over previous year
- -
Gross Income
Revenue less total cost of services (PHP
millions)
20.4 -
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.
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.
There are no 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.
48

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, 2009 and
December 31, 2008.
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, 2009 and 2008, and the
statements of income, changes in equity, and cash flows for each of the three (3) years in the period ended
December 31, 2009.
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.
49

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 amounts/amounted to PHP 600,000,
PHP 500,000 and PHP 450,000 for 2009, 2008 and 2007, respectively.
Additionally, in 2007, PHP 1,031,250 in engagement fees were paid (exclusive of VAT and out-of-pocket
expenses) in connection with the audit of the Company’s accounts as of June 30, 2007 relative to its initial
public offering.
The Company’s Executive Committee approves the audit fees as recommended by the Management
Committee.
50

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 Philippine Accounting Standards (PAS) and Philippine Financial
Reporting Standards (PFRS) and Philippine Interpretations from the International Financial Reporting
Interpretations Committee (IFRIC) which became effective on January 1, 2009:
New Standards
• PAS 1, Presentation of Financial Statements (Revised)
• PAS 23, Borrowing Costs (Revised)
• PFRS 8, Operating Segments
Amendments to Standards
• PAS 32 and PAS 1 Amendments – Puttable Financial Instruments and Obligations Arising on
Liquidation
• PFRS 1 and PAS 27 Amendments – Cost of an Investment in a Subsidiary, Jointly Controlled
Entity or Associate
• PFRS 2, Amendment – Vesting Conditions and Cancellations
• PFRS 7 Amendments – Improving Disclosures about Financial Instruments
• PAS 39 Financial Instruments – Recognition and Measurement (for periods ending on or after
June 30, 2009)
Philippine Interpretations
• Philippine Interpretation from the International Financial Reporting Interpretations Committee
(IFRIC) 13, Customer Loyalty Programmes
• Philippine Interpretation IFRIC 16, Hedges of a Net Investment in a Foreign Operation
• Philippine Interpretation IFRIC 18, Transfers of Assets from Customers
51

Adopted new standards, amendments and interpretations that are deemed to have an impact on the
financial statements or performance of the Group are described below:
PAS 1, Presentation of Financial Statements
The revised standard separates owner and non-owner changes in equity. The statement of changes
in equity will include only details of transactions with owners, with all non-owner changes in equity
presented in a reconciliation of each component of equity. In addition, the standard introduces the
statement of comprehensive income, which presents all items of income and expense recognized in
profit or loss, together with all other items of recognized income and expense, either in one single
statement, or in two linked statements. The revision also includes changes in titles of some of the
financial statements to reflect their function more clearly, although not mandatory for use in the
financial statements. The Group has elected to present two linked statement of comprehensive
income and statement of income and also retained the title of its balance sheet.
PFRS 8, Operating Segments
PFRS 8 replaced PAS 14, Segment Reporting upon its effective date. The Group concluded that the
operating segments determined in accordance with PFRS 8 are the same as the business segments
previously identified under PAS 14.
PFRS 7 Amendments – Improving Disclosures about Financial Instruments
The amendments to PFRS 7, Financial Instruments: Disclosures, require additional disclosures about
fair value measurement and liquidity risk. Fair value measurements related to items recorded at fair
value are to be disclosed by source of inputs using a three level fair value hierarchy, by class, for all
financial instruments recognized at fair value. In addition, a reconciliation between the beginning and
ending balance for level 3 fair value measurements is now required, as well as significant transfers
between levels in the fair value hierarchy. The amendments also clarify the requirements for liquidity
risk disclosures with respect to derivative transactions and financial assets used for liquidity
management.
Improvements to PFRSs 2008
The omnibus amendments to PFRSs issued in 2008 and 2009 (with respect to PAS 18, Revenue)
were issued primarily with a view to removing inconsistencies and clarifying wordings. There are
separate transitional provisions for each standard. The adoption of these amendments resulted in
changes in accounting policies but did not have any impact on the financial position or performance of
the Group.
• PAS 18, Revenue
The Amendment adds guidance (which accompanies the Standard) to determine whether an entity
is acting as a principal or as an agent. The features to consider are whether the entity (a) has
primary responsibility for providing the goods or service; (b) has inventory risk; (c) has discretion in
establishing prices; and (d) bears the credit risk. The Group assessed its revenue arrangements
against these criteria and concluded that it is acting as principal in some arrangements and as an
agent in other arrangements.
52

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, 55, Filipino
Director, Chairman and Chief Executive Officer
Director’s Term of Office July 17, 2009 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. (A Savings Bank) (2007 to date); Chairman, Six Alps
Corporation (1997 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 and is active in the real property development and
property management field. He 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), and Board Governor (2000 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.
Armin V. Demetillo, 41, Filipino
Director, Chairman of the Executive Committee
Director’s Term of Office July 17, 2009 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).
Mr. Demetillo obtained his bachelor of arts degree, major in philosophy cum laude from the
Saint Joseph Seminary College in 1990.
53

Adolfo S. Suzara (+), Filipino
Director and Chairman, Executive Committee
Period Served as Such March 2002 to April 2, 2009
Mr. Suzara served as Director and Chairman of the Executive Committee of I-Remit from 2001
until he passed away on April 2, 2009. He was also a Director the Chairman of the Bids and
Awards Committee of Sterling Bank of Asia, Inc. (A Savings Bank) (2006 - 2009). In addition,
he concurrently held the following positions: Director and Member of the Executive
Committee, Nexus Technologies, Inc. (1995 - 2009); Director and Member of the Executive
Committee, Wordtext Systems, Inc. (2003 - 2009); Director and President, Webb Fontaine
Pilipinas, Inc. (2005 - 2009); Chairman, Microshop Subic, Inc. (2001 - 2009); Director, WS
Pacific Publications, Inc. (1996 - 2009); Chairman and President, Philippine Microshop
International, Inc. (1989 - 2009); General Manager, Makati Microshop (1984 - 2009);
Chairman, Microshop Subic, Inc. (2001 - 2009); Director, Zhangzhou Steel Works Co., Ltd.
(2005 - 2009); Chairman and President, Case Realty and Development Co., Inc. (1987 -
2009).
He was also a Director and a Member of the Executive Committee and Audit Committee,
iVantage Corporation (2001 – 2006); Director, Yehey Corporation (2002 – 2005); Director, e-
Business Services, Inc. (2002 – 2005); President, FCPI Group, Inc. (2002 – 2003).
He also served in government initially in 1993 as a consultant to the Commissioner of the
Bureau of Customs, and subsequently, in 1998 as Deputy Commissioner in charge of the
Management Information System and Technology Group. He also served as a consultant to
the Commissioner of the Bureau of Internal Revenue from 2003 to 2005.
He was also active in several professional and civic associations, the most recent of which
were as Chairman of the Board of Trustees, International Visitor Program – Philippines Alumni
Foundation, Inc. (2005 - 2009), an organization of the US government’s International Visitor
Program whose members do volunteer work in the Philippines; as Trustee of the Public
Finance Institute of the Philippines (2007 - 2009); and as Trustee of the Foundation for
Revenue Enhancement (2004 - 2009).
Mr. Suzara obtained his bachelor of arts degree, major in economics, from the Ateneo de
Manila University in 1972.
54

Harris Edsel D. Jacildo, 48, Filipino
Director, President & Chief Operating Officer
Director’s Term of Office July 17, 2009 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) (2007 to date); Director, Lucky Star Management Ltd.
(Hong Kong) (2002 to date); Director, Iremit Global Remittance Ltd. (United Kingdom) (2002 to
date); Director, I-Remit Australia Pty Ltd (2002 to date).
He is also a Trustee of the Kabalikat ng Migranteng Pilipino, Inc. (KAMPI) (2003 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 – 1991). In 1991, he joined the remittance division of the Rizal Commercial
Banking Corporation (RCBC) where he headed the domestic marketing unit until 2005 and
was the head of its 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, 60, Filipino
Director
Director’s Term of Office July 17, 2009 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.
55

A. Bayani K. Tan, 53, Filipino
Director
Director’s Term of Office July 17, 2009 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, Corporate Secretary or both of the following
reporting companies: Belle Corporation (1994 to date); First Abacus Financial Holdings
Corporation (1994 to date); Sinophil Corporation (1993 to date); TKC Steel Corporation (2007
to date); Pacific Online Systems Corporation (2007 to date); Tagaytay Highlands International
Golf Club, Inc. (1993 to date); The Country Club at Tagaytay Highlands, Inc. (1995 to date);
Tagaytay Midlands Golf Club, Inc. (1997 to date); The Spa and Lodge at Tagaytay Highlands,
Inc. (1999 to date); Vantage Equities, Inc. (1993 to date); Destiny Financial Plans, Inc. (2003
to date); Philequity Fund, Inc. (1997 to date); Philequity Peso Bond Fund, Inc. (2000 to date);
Philequity PSE Index Fund, Inc. (1999 to date); and Philequity Dollar Income Fund, Inc. (1999
to date).
Mr. Tan has also been the Corporate Secretary and a Director of Sterling Bank of Asia, Inc. (A
Savings Bank) since December 2006. He is also a Director, Corporate Secretary, or both for
the following private companies: City Cane Corporation, Destiny LendFund, Inc., Herway, Inc.,
Monte Oro Grid Resources Corporation, and Highlands Gourmet Specialist Corp. He is
Corporate Secretary for Goodyear Steel Pipe Corporation, Hella-Phil., Inc., JTKC Equities,
Inc., Star Equities Inc., Metro Manila Turf Club, Inc., Oakridge Properties, Inc., Winstone
Industrial Corp., Winsteel Manufacturing Corp., Discovery Country Suites, Inc., The Discovery
Leisure Company, Inc., Yehey! Corporation, Belle Bay City Corporation and E-Business
Services, Inc. He is also Director and Corporate Secretary for Monte Oro Resources &
Energy, Inc., FHE Properties, Inc., Club Asia, Inc., and Yehey! Money, Inc. He is currently the
legal counsel of Xavier School, Inc. Atty. Tan is a Managing Partner of the law offices of Tan
Venturanza Valdez (1989 to date) and the Managing Director/President of Shamrock
Development Corporation.
In the past, Atty. Tan has been a Director and Corporate Secretary of the APC Group, Inc. and
Clearwater Country Club, Inc., Corporate Secretary of the International Exchange Bank and
Eastern Telecommunications Philippines, Inc., and Assistant Corporate Secretary and Legal
Counsel of the Philippine Stock Exchange, Inc.
Atty. Tan holds a master of laws degree from the 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 the San Beda College (class of 1976) from where he graduated class
valedictorian and was awarded the medal for academic excellence.
56

Ben C. Tiu, 57, Filipino
Director
Director’s Term of Office July 17, 2009 until the next annual stockholders’ meeting
Period Served as Such May 18, 2007 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 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., 33, Filipino
Director
Director’s Term of Office July 17, 2009 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 President of
Tera Investments, Inc. (2003 to date); a Director of Sterling Bank of Asia, Inc. (A Savings
Bank) (2007 to date), Director and Treasurer, JTKC Equities, Inc. (2003 to date), Director,
Zhang Zhou Steelworks Co., Ltd. (2005 to date), Director and Treasurer, JTKC Land, Inc.
(2003 to date), Star Equities Inc. (2006 to date), Director and Treasurer, The Discovery Leisure
Company (2001 to date), Director, Oakridge Properties, Inc. (2003 to date), Director and
Treasurer, Discovery Country Suites, Inc. (2004 to date), Director and President, Southern
Visayas Property Holdings, Inc. (2003 to date), and Director and First Vice President, JTKC
Realty Corporation (2005 to date). He is also concurrently a Director and the Treasurer of Star
Equities Inc. (2006 to date) and Touch Solutions, Inc. (2001 to date). He is also the President
of Fidelity Securities, Inc. (2002 to date).
Mr. John Tiu obtained his bachelor of science degree in electrical engineering (minor in
mathematics) from the University of Washington, USA in 1998.
Ruben C. Tiu, 53, Filipino
Director
Director’s Term of Office July 17, 2009 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);
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.
57

Calixto V. Chikiamco, 59, Filipino
Director
Director’s Term of Office July 17, 2009 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 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 a Director. He is also 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.
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 17, 2009.
Jose Joel Y. Pusta, 57, Filipino
Independent Director
Director’s Term of Office July 17, 2009 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.
58

Gregorio T. Yu, 50, Filipino
Director
Director’s Term of Office July 17, 2009 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), Chief Executive Officer
of 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. (A Savings Bank) (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: Nexus Technologies, Inc. (2001
to date); Jupiter Systems, Inc. (2001 to date); Wordtext Systems, Inc. (2001 to date); Yehey,
Inc. (2001 to date); Philequity Money Market Fund, Inc. (2000 to date); Philequity Fund, Inc.
(1994 to date) Philequity PSE Index Fund, Inc. (1999 to date); Philequity Dollar Income Fund,
Inc. (1999 to date). He is also 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 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.
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.
59

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:
Alma C. Santiago, 33, Filipino
Corporate Secretary
Term of Office July 17, 2009 to November 30, 2009
Period Served as Such May 18, 2007 to November 30, 2009
Atty. Santiago also served as the Corporate Secretary of Philequity Management, Inc. (2005 to
2009) and as Assistant Corporate Secretary of the following companies: First Abacus
Financial Holdings Corporation (2006 to 2009); Vantage Equities (2007 to 2009); Oakridge
Properties, Inc. (2006 to 2009); Tagaytay Highlands Community Condominium Association,
Inc. (2005 to 2009); Tagaytay Midlands Community Homeowners’ Association, Inc. (2005 to
2009); Armi Corporation (2006 to 2009); British Wire Industries Corporation (2006 to 2009);
Club Asia, Inc. (2006 to 2009); Discovery Country Suite (2006 to 2009); Southern Visayas
Property Holdings, Inc (2006 to 2009); JTKC Equities, Inc. (2007 to 2009); Star Equities Inc.
(2006 to 2009); Straightflush Corp. (2006 to 2009); The Discovery Leisure Company, Inc.
(2006 to 2009); Goodyear Steel Pipe Corporation (2006 to 2009); Philippine Calcium Industries
Company, Inc. (2006 to 2009); and Union Pacific Ace Industries, Inc. (2006 to 2009).
She obtained her bachelor of arts degree (majored in economics) from the Ateneo de Manila
University in 1997 and her Juris Doctor graduate degree and professional doctorate in law
from the Ateneo de Manila University School of Law in 2002. Atty. Santiago was admitted to
the Philippine Bar in February 2003 and is currently an Associate of the law offices of Tan
Venturanza Valdez.
Nancy Joan M. Javier, 42, Filipino
Corporate Secretary
Term of Office December 1, 2009 until the next annual stockholders’
meeting
Period Served as Such December 1, 2009 to date
Atty. Javier is the incumbent Corporate Secretary of I-Remit, Inc. She is also the Corporate
Secretary of Jolliville Holdings Corporation (2009 to date) and St. Patrick Mining and
Development Corporation (2009 to date). She was a Senior Associate of Mayer Brown JSM
(formerly Johnson Stokes & Master) in Ho Chi Minh City, Vietnam (2007 to 2008) and SyCip
Salazar Hernandez & Gatmaitan (1995 – 2007).
She finished her preparatory course in veterinary medicine and obtained her bachelor of
science in tourism degree cum laude degree in 1988 and bachelor of laws degree (Dean’s
medalist for academic excellence) in 1995 from the University of the Philippines. She also
obtained her master of laws, international law degree from the University of Michigan Law
School in Ann Arbor, Michigan, USA in 2002. She was admitted to the Philippine Bar in 1996.
She passed the New York State bar examination in 2009 and is licensed foreign practicing
lawyer of Vietnam, 2008 – 2012. She is a Senior Associate of Tan Venturanza Valdez (2009 to
date).
60

Atty. Michelle San Buenaventura-Dy, 30, Filipino
Corporate Secretary
Term of Office July 17, 2009 until the next annual stockholders’ meeting
Period Served as Such July 20, 2007 to date
Atty. San Buenaventura-Dy is also currently the Assistant Corporate Secretary, having been
elected during the respective stockholders’ meetings in 2007 of the following reporting
companies: Belle Corporation, Sinophil Corporation and Sterling Bank of Asia Inc (A Savings
Bank). Since 2007, she has also been the Corporate Secretary of private companies such as
Metropolitan Leisure & Tourism Corporation, Highlands Gourmet Specialist Corporation,
Highlands China Restaurant Corporation, Parallax Resources, Inc., Highland Gardens
Corporation; Director and Corporate Secretary of and Subco Technology, Inc.; and Assistant
Corporate Secretary of Fidelity Securities, Inc., Pan-Asean Multi-Resources Corporation,
Demikk Holdings, Inc., JTKC Realty Corporation, Aldex Realty Corporation, Demikk Realty,
Inc., JTKC Land, Inc., HotelSystems Asia, Inc., Donau Deli, Inc., JT Perle Corporation, Metro
Manila Turf Club, Inc., Foundation Capital Resources, Inc.
She is a member of the Philippine Bar and is an Associate of the Tan Venturanza Valdez law
offices. She obtained her bachelor of laws degree in 2005 and her bachelor’s degree in public
administration in 2000 from the University of the Philippines.
61

The names, ages, citizenship, present positions, previous positions, terms of office, and period
served of all Executive Officers are as follows:
Bansan C. Choa, 55, Filipino
Director, Chairman and Chief Executive Officer
Term of Office July 17, 2009 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, 48, Filipino
Director, President and Chief Operating Officer
Term of Office July 17, 2009 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”)
Ma. Elizabeth G. Yao, 39, Filipino
Senior Vice President & Head, Service and Operations Division
Term of Office July 17, 2009 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.
Ronald C. Santos, 38, Filipino
First Vice President & Head, International Treasury
Term of Office July 17, 2009 until the next annual stockholders’ meeting
Period Served as Such February 1, 2003 to date
Mr. Santos joined I-Remit, Inc. in 2002 and headed the Company’s international treasury unit
in charge of trading its foreign currencies. He was previously connected with the TeleMoney
Division of the Rizal Commercial Banking Corporation (RCBC), the unit that handles OFW
remittances, as a senior account officer and foreign exchange trader (1995 – 2000) and as the
head of its product and business development function (2000 – 2003).
He obtained his master in business administration degree from the Ateneo de Manila
University Graduate School of Business in 2001 and his bachelor’s degree in marketing from
the San Beda College in 1993.
Bernadette Cindy C. Tiu, 30, Filipino
First Vice President & Chief Financial Officer; Head, Finance Division
Term of Office July 17, 2009 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.
She obtained her bachelor’s degree in business administration (majored in accounting and
finance) from the Boston University School of Management in 2001.
62

Fitzgerald S. Duba, 45, Filipino
Vice President & Compliance Officer; Head, Corporate Affairs and Information Division
Term of Office July 17, 2009 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.
George S. Inocencio, 45, Filipino
Vice President & Head, Customer Care and Support Department
Term of Office July 17, 2009 until the next annual stockholders’ meeting
Period Served as Such September 2008 to date
Mr. Inocencio was a Managing Director and a member of the Board of Directors of Info
Alchemy Corporation (2001 – 2008). He was formerly a Manager, and Chief Representative
and Country Head of the Land Bank of the Philippines in Taipei, Taiwan and a Senior
Specialist – Remittance Program from 1987 to 1992 of the Overseas Workers Welfare
Administration (OWWA). He is concurrently, a Director of Morning Queen Laundry Ventures,
Inc.
He obtained his bachelor of arts degree in economics from the University of the Philippines in
1986 and his master in management (with distinction) from the Asian Institute of Management
in 2001.
Dina M. Simbulan, 48, Filipino
Vice President & Head, Sales
Term of Office December 28, 2009 until the next annual stockholders’
meeting
Period Served as Such December 28, 2009 to date
Ms. Simbulan was formerly the chief of human resources and administration of E-business
Services, Inc – Western Union, a position she held from 2001 to 2002. She was appointed
Chief for Operations of the same organization in 2002. She joined I-Remit, Inc. in 2005 and
handled various positions in marketing and operations before joining Surewell Equities, Inc. as
Chief Operations Officer.
She obtained her bachelor of arts degree in development studies from the University of the
Philippines in 1987. She had also completed two years of accountancy with the Polytechnic
University of the Philippines.
63

(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.
(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 0f
Mandaluyong City, which case 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, where the case
is pending at present (docketed as CA G.R. No. 1007880)
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.
64

(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 the 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.
65

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
2010
(Estimate)
2009
(Actual)
2008
(Actual)
(2) Compensation of Directors
Bansan C. Choa Chairman & CEO
Harris E. D. Jacildo President & COO
Ma. Elizabeth G. Yao SVP
Bernadette Cindy C. Tiu FVP & CFO
Ronald C. Santos FVP
66
Aggregate
Compensation
8,668,189.90
All other officers and directors as a group unnamed 8,036,447.52
Bansan C. Choa Chairman & CEO
Harris E. D. Jacildo President & COO
Ma. Elizabeth G. Yao SVP
8,226,256.76
Bernadette Cindy C. Tiu FVP & CFO
Ronald C. Santos FVP
All other officers and directors as a group unnamed 5,285,433.45
Bansan C. Choa Chairman & CEO
Harris E. D. Jacildo President & COO
Ismael S. Reyes SVP
7,570,103.19
Ma. Elizabeth G. Yao SVP
Bernadette Cindy C. Tiu FVP & CFO
All other officers and directors as a group unnamed 5,265,802.58
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.
67

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, 2009:
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 220,508,325¹ 39.2073%
Same as record owner Filipino 158,418,225 28.1674%
Same as record owner Filipino 122,043,900 21.6999%
Same as record owner Filipino 43,428,450 7.7218%
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 131,528,205² 23.3862%
* 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.
1 Includes 9,329,000 Treasury shares purchased from the stock market under the Buy-back Program that was approved by the Board on
August 15, 2008.
2 Includes 62,581,775 shares in favor of beneficial owner JTKC Equities, Inc. which owns a total of 106,010,225 shares or per cent held of
18.8490%.
68

(2) Security Ownership of Management (Individual Directors and Executive Officers)
Title of
Nature of Legal &
Per cent
Class Name of Beneficial Owner Number of Shares Beneficial Ownership Citizenship of Class
Common Bansan C. Choa 778,000 Direct Filipino 0.13833%
500,000 Indirect 0.08890%
Common Armin V. Demetillo 100 Direct Filipino 0.00002%
Common Harris Edsel D. Jacildo 344,300 Direct Filipino 0.06122%
Common Calixto V. Chikiamco 100 Direct Filipino 0.00002%
Common Gilbert C. Gaw 874,555 Direct Filipino 0.15550%
Common Jose Joel Y. Pusta 100 Direct Filipino 0.00002%
Common A. Bayani K. Tan 520,040 Direct Filipino 0.09247%
Common Ben C. Tiu 1,090,030 Direct Filipino 0.19381%
Common Ruben C. Tiu 378,960 Direct Filipino 0.06738%
Common John Y. Tiu, Jr. 522,150 Direct Filipino 0.09284%
Common Gregorio T. Yu 100 Direct Filipino 0.00002%
Common Michelle B. San
8,000 Direct Filipino 0.00142%
Buenaventura-Dy
Common Bernadette Cindy C. Tiu 140,900 Direct Filipino 0.02505%
424,500 Indirect 0.07548%
The aggregate number of shares owned of record by all Directors and Executive Officers as a group
named herein as of December 31, 2009 is 5,581,835 common shares or approximately 0.99% 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.
69

Item 12. Certain Relationships and Related Party Transactions
In the ordinary course of business, the Company engages in transactions with its subsidiaries and associate
consisting of delivery services for a fee.
The Company, as Lessor, entered into four (4) Lease Agreements 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.
I-Remit has office sharing arrangements with Surewell Enterprises, Ltd. in Hong Kong and Surewell Equities
Pte. Ltd. in Singapore. Mr. Bansan C. Choa, Chairman and Chief Executive Officer, is a shareholder in both
companies.
The Company maintains deposit accounts with the Sterling Bank of Asia, Inc. (A Thrift Bank). In 2009 and
2008, the Company has funded its retirement plan amounting to PHP 4.8 million and PHP 3.17 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 of 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.
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. Nancy Joan
M. Javier, the current Corporate Secretary, Atty. Alma C. Santiago, former Corporate Secretary, and Atty.
Michelle B. San Buenaventura-Dy, 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.
70

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.
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 10, 2009, 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 10,
2008.
71

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 31, 2008. Each
member of their respective committees named below began holding office on July 31, 2008 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).
72

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).
73

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
74

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 22, 2010.
The Company accomplished and submitted the 2009 Corporate Governance Scorecard for Publicly-Listed
Companies on September 17, 2009 pursuant to SEC Memorandum Circular No. 8 dated October 10, 2008.
75

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, 2009
(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 1, 2009 Completion of the acquisition of up to 49% of outstanding capital stock of Hwa Kung Hong & Co.,
Ltd.
July 10, 2009 Press release: I-Remit, Jollibee partner to foster family ties with the Salu-Salo Padala Treat
July 17, 2009 Election of directors in the 2009 Annual Stockholders’ Meeting and the appointment of officers
and committee members in the subsequent organizational meeting of the Board of Directors
Elected members of the Board of Directors
“Please be advised that during the annual shareholders’ meeting, the following were elected as
members of the Board of Directors of the Company for the year 2009 – 2010 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 Edsel D. Jacildo - Director
A. Bayani K. Tan - Director
Ben C. Tiu - Director
John Y. Tiu, Jr. - Director
Ruben C. Tiu - Director
76

Further, during the same meeting, the shareholders approved the audited financial statements of
the Company as of year-end 2008, as well as the re-appointment of SyCip, Gorres and Velayo as
the Company’s external auditor for the year 2010.
In the organizational meeting, the following persons were elected as officers of the Company for
the year 2008-2009, 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
Alma C. Santiago - Corporate Secretary
Michelle B. San Buenaventura-Dy - Asst. Corporate Secretary
Bernadette Cindy C. Tiu - First VP & Chief Finance Officer
Fitzgerald S. Duba - Compliance Officer
Also during the aforesaid organizational meeting of the Board, the following directors were elected
as members of the various Board committees for the year 2009 – 2010, 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 Committee
1. Gregorio T. Yu (Chairman)
2. Bansan C. Choa
3. John Y. Tiu, Jr.
4. Harris 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”
77

July 17, 2009 President’s Report during the 2009 Annual Stockholders’ Meeting
July 17, 2009 Notarized undertaking of a new director, who was elected in the 2009 Annual Stockholders’
Meeting of I-Remit, Inc. pursuant to Section 4.2 of the Corporation’s Manual on Corporate
Governance.
July 17, 2009 Press release: I-Remit eyes Italy for expansion
August 7, 2009 Copy of the letter submitted to the Philippine Stock Exchange dated August 7, 2009 providing the
Exchange with a copy of the Certificate of Attendance to the Corporate Governance & Risk
Management Program of Mr. Armin V. Demetillo, a new director who was elected in the July 17,
2009 Annual Stockholders’ Meeting of I-Remit, Inc.
August 10, 2009 Certifications under oath executed and signed by the Company’s Independent Directors, Messrs.
Jose Joel Y. Pusta and Gregorio T. Yu.
August 14, 2009 Press release: I-Remit opens its newest branch in North America’s largest mall; to offer remittance
services to Filipinos and Chinese in Canada
August 27, 2009 Signing of a Memorandum of Agreement with Elite Exchange Remittance Services S.A., a tie-up
in Ambelokipi, Athens, Greece
September 4, 2009 Release of shares under voluntary lock-up
September 25, 2009 Transfer to the I-Remit Retirement Fund of 808,100 shares bought back from resigned employees
and officers
September 30, 2009 Press release: I-Remit waives remittance service fees to OFWs in all its overseas offices
November 20, 2009 Resignation of the Corporate Secretary and the appointment of her replacement
November 24, 2009 Letter from the Company’s subsidiary in Austria, IREMIT EUROPE Remittance Consulting AG,
advising the registration of said subsidiary with the Banca D’Italia Eurosistema as a provider of
money transfer services in Italy
78

I-REMIT, INC. AND SUBSIDIARIES
Aging of Consolidated Receivables
Unaudited
December 31, 2009
Annex A
Total Current 2-30 Days 31-60 Days Over 60 Days
Agents 1,085,228,800 1,085,228,800
-
-
Couriers 54,252,087 - 54,252,087
-
Minority shareholder-IERCAG 25,014,743 25,014,743
Related Parties 18,927,425 9,850,430 496,775
- 8,580,220
Bureau of Internal Revenue 13,160,535 13,160,535
Dividend 7,186,578 -
- 7,186,578
Others 43,747,994 -
- 43,747,994
1,247,518,162 1,095,079,230 54,748,862 - 97,690,070

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 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.
*SGVMC113951*

- 2 -
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained and the reports of the other auditors are sufficient
and appropriate to provide a reasonable basis for our audit opinion.
Opinion
In our opinion, based on our audits and the reports of the other auditors, the financial statements
referred to above present fairly, in all material respects, the financial position of the Group and of the
Parent Company as of December 31, 2009 and 2008, and their financial performance and their cash
flows for each of the three years in the period ended December 31, 2009 in accordance with Philippine
Financial Reporting Standards.
SYCIP GORRES VELAYO & CO.
Josephine Adrienne A. Abarca
Partner
CPA Certificate No. 92126
SEC Accreditation No. 0466-AR-1
Tax Identification No. 163-257-145
PTR No. 2087359, January 4, 2010, Makati City
March 19, 2010
*SGVMC113951*

I-REMIT, INC. AND SUBSIDIARIES
STATEMENTS OF COMPREHENSIVE INCOME
Consolidated Parent Company
Years Ended December 31
2009 2008 2007 2009 2008 2007
Net Income P=133,148,358 P=129,977,514 P=113,289,849 P=72,074,196 P=78,429,342 P=91,043,147
Other Comprehensive
Income (Loss):
Cumulative translation adjustment 5,927,398 (22,848,594) (3,339,611) – – –
Total Comprehensive Income for
the Year, net of tax P=139,075,756 P=107,128,920 P=109,950,238 P=72,074,196 P=78,429,342 P=91,043,147
Total Comprehensive Income
attributable to:
Equity holders of the Parent
Company P=141,585,184 P=109,061,406 P=103,025,590
Minority interest (2,509,428) (1,932,486) 6,924,648
See accompanying Notes to Financial Statements.
P=139,075,756 P=107,128,920 P=109,950,238
*SGVMC113951*

I-REMIT, INC. AND SUBSIDIARIES
STATEMENTS OF CHANGES IN EQUITY
Capital Stock
(Note 16)
Consolidated
Equity Attributable to Equity Holders of the Parent Company
Capital Paid-in
Cumulative
Excess of Retained Share-based Translation Treasury
Par Value Earnings Payment Adjustment
Stock
(Note 16) (Note 16) (Notes 16 and 18) (Note 16) (Notes 16 and 18) Total
Balance at January 1, 2009 P=562,417,000 P=424,830,173 P=196,578,702 P=3,155,626 (P=25,604,416) (P=40,792,350) P=1,120,584,735 (P=4,511,980) P=1,116,072,755
Net income (loss) for the year – – 136,379,766 – – – 136,379,766 (3,231,408) 133,148,358
Translation adjustment during the year – – – 5,205,418 – 5,205,418 721,980 5,927,398
Total comprehensive income and expenses recognized
during the year – – 136,379,766 – 5,205,418 – 141,585,184 (2,509,428) 139,075,756
Cash dividends – – (26,012,383) – – – (26,012,383) (3,928,755) (29,941,138)
Purchase of own stock – – – – – (130,900) (130,900) – (130,900)
Share-based payment – – – 1,527,702 – – 1,527,702 – 1,527,702
Transfers at the end of the lock up period – 4,683,328 – (4,683,328) 808,100 808,100 808,100
Additional minority interest in a consolidated subsidiary – – – – – – – 25,014,743 25,014,743
Balance at December 31, 2009 P=562,417,000 P=429,513,501 P=306,946,085 P=– (P=20,398,998) (P=40,115,150) P=1,238,362,438 P=14,064,580 P=1,252,427,018
Balance at January 1, 2008 P=562,417,000 P=424,830,173 P=87,783,477 P=1,000,313 (P=3,880,092) (P=128,700) P=1,072,022,171 P=5,068,381 P=1,077,090,552
Net income (loss) for the year – – 130,785,730 – – – 130,785,730 (808,216) 129,977,514
Translation adjustment during the year – – – – (21,724,324) – (21,724,324) (1,124,270) (22,848,594)
Total comprehensive income and expenses recognized
during the year – – 130,785,730 – (21,724,324) – 109,061,406 (1,932,486) 107,128,920
Cash dividends – – (21,990,505) – – – (21,990,505) (4,616,908) (26,607,413)
Purchase of own stock – – – – – (40,663,650) (40,663,650) – (40,663,650)
Share-based payment – – – 2,155,313 – – 2,155,313 – 2,155,313
Minority interest in newly consolidated subsidiary – – – – – – – (3,030,967) (3,030,967)
Balance at December 31, 2008 P=562,417,000 P=424,830,173 P=196,578,702 P=3,155,626 (P=25,604,416) (P=40,792,350) P=1,120,584,735 (P=4,511,980) P=1,116,072,755
Minority
Interest
Total
Equity
*SGVMC113951*

Capital Stock
(Note 16)
Capital Paid-in
Excess of
Par Value
(Note 16)
- 2 -
Consolidated
Equity Attributable to Equity Holders of the Parent Company
Deposits on
Cumulative
Future Stock Retained Share-based Translation
Subscriptions Earnings Payment Adjustment
(Note 16) (Note 16) (Notes 16 and 18) (Note 16)
Treasury
Stock
(Notes 16 and 18) Total
Balance at January 1, 2007 P=50,000,000 P=60,000,000 P=53,000,000 P=24,418,276 P=– (P=540,481) P=– P=186,877,795 P=3,231,119 P=190,108,914
Net income for the year – – – 106,365,201 – – – 106,365,201 6,924,648 113,289,849
Translation adjustment during the year – – – – – (3,339,611) – (3,339,611) – (3,339,611)
Total comprehensive income and expenses recognized
during the year – – – 106,365,201 – (3,339,611) – 103,025,590 6,924,648 109,950,238
Addition to deposits on future stock subscription – – 294,000,000 – – – – 294,000,000 – 294,000,000
Issuances of shares of stock 469,417,000 364,830,173 (347,000,000) – – – – 487,247,173 – 487,247,173
Stock dividends 43,000,000 – – (43,000,000) – – – – – –
Purchase of own stock – – – – – – (128,700) (128,700) – (128,700)
Acquisition of minority interest – – – – – – – – (5,087,386) (5,087,386)
Share-based payment – – – – 1,000,313 – – 1,000,313 – 1,000,313
Balance at December 31, 2007 P=562,417,000 P=424,830,173 P=– P=87,783,477 P=1,000,313 (P=3,880,092) (P=128,700) P=1,072,022,171 P=5,068,381 P=1,077,090,552
Minority
Interest
Total
Equity
*SGVMC113951*

Capital Stock
(Note 16)
Capital Paid-in
Excess of Par
Value
(Note 16)
- 3 -
Deposits on
Future Stock
Subscriptions
(Note 16)
Parent Company
Retained
Earnings
(Note 16)
Share-based
Payment
(Notes 16
and 18)
Treasury
Stock
(Notes 16 and 18)
Balance at January 1, 2009 P=562,417,000 P=424,830,173 P=– P=147,622,281 P=3,155,626 (P=40,792,350) P=1,097,232,730
Net income for the year – – – 72,074,196 – – 72,074,196
Cash dividends – – – (26,012,383) – – (26,012,383)
Purchase of own stock (Note 16) – – – – – (130,900) (130,900)
Share-based payment (Note 16) – – – – 1,527,702 – 1,527,702
Transfers at the end of the lock up period – 4,683,328 – – (4,683,328) 808,100 808,100
Balance at December 31, 2009 P=562,417,000 P=429,513,501 P=– P=193,684,094 P=– (P=40,115,150) P=1,145,499,445
Balance at January 1, 2008 P=562,417,000 P=424,830,173 P=– P=91,183,444 P=1,000,313 (P=128,700) P=1,079,302,230
Net income for the year – – – 78,429,342 – – 78,429,342
Cash dividends – – – (21,990,505) – – (21,990,505)
Purchase of own stock – – – – – (40,663,650) (40,663,650)
Share-based payment – – – – 2,155,313 – 2,155,313
Balance at December 31, 2008 P=562,417,000 P=424,830,173 P=– P=147,622,281 P=3,155,626 (P=40,792,350) P=1,097,232,730
Balance at January 1, 2007 P=50,000,000 P=60,000,000 P=53,000,000 P=43,140,297 P=– P=– P=206,140,297
Net income for the year – – – 91,043,147 – 91,043,147
Addition to deposits on future stock subscription – – 294,000,000 – – – 294,000,000
Issuances of shares of stock 469,417,000 364,830,173 (347,000,000) – – – 487,247,173
Stock dividends 43,000,000 – – (43,000,000) – – –
Purchase of own stock – – – – – (128,700) (128,700)
Share-based payment – – – – 1,000,313 – 1,000,313
Balance at December 31, 2007 P=562,417,000 P=424,830,173 P=– P=91,183,444 P=1,000,313 (P=128,700) P=1,079,302,230
See accompanying Notes to Financial Statements
Total
Equity
*SGVMC113951*

I-REMIT, INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
Consolidated Parent Company
Years Ended December 31
2009 2008 2007 2009 2008 2007
CASH FLOWS FROM
OPERATING ACTIVITIES
Income before income tax
Adjustments for:
P=173,072,902 P=188,194,854 P=121,336,074 P=99,271,041 P=117,098,701 P=92,377,765
Interest expense 48,675,188 13,505,275 24,330,618 48,675,188 13,249,551 24,330,547
Dividend income (Note 22)
Depreciation and amortization
– – – (34,242,442) – –
(Notes 11 and 13)
Equity in net earnings of associates
14,220,427 11,594,019 8,739,715 8,614,531 7,560,896 5,887,896
(Note 10) (6,146,792) (8,873,173) (2,226,752) – – –
Interest income (Note 22)
Unrealized foreign exchange gain
(15,181,685) (7,213,676) (3,179,220) (7,670,526) (5,262,353) (1,986,501)
(Note 22) (5,172,171) (4,722,355) (4,980,817) (5,172,171) (4,722,355) (2,325,050)
Share-based payment (Note 18)
Changes in operating assets and
liabilities:
Decrease (increase) in the
amounts of:
1,527,702 2,155,313 1,000,313 1,527,702 2,155,313 1,000,313
Receivables (303,449,017) (384,506,104) (246,814,504) (241,501,468) (336,781,484) (279,292,442)
Other current assets (2,037,167) (14,998,908) 6,820,250 1,051,219 (11,850,229) 8,429,518
FVPL
Increase (decrease) in the
amounts of:
Beneficiaries and other
(65,800,288) – – – – –
payables 24,648,111 102,397,431 (44,615,828) (63,857,017) 178,526,320 (86,764,078)
Retirement liability (1,782,591) (106,397) 3,168,050 (1,782,591) (106,397) 3,168,050
Net cash used in operations (137,425,381) (102,573,721) (136,422,101) (195,086,534) (40,132,037) (235,173,982)
Income taxes paid (27,201,880) (45,333,414) (2,717,933) (25,075,888) (29,475,389) –
Interest received 15,181,685 7,213,676 3,179,220 7,670,526 5,262,353 1,986,501
Interest paid (58,548,843) (1,584,754) (24,345,619) (48,736,988) (11,140,885) (24,345,547)
Net cash used in operating activities
CASH FLOWS FROM
INVESTING ACTIVITIES
Acquisitions of subsidiaries and
(207,994,419) (142,278,213) (160,306,433) (261,228,884) (75,485,958) (257,533,028)
associate (Note 10) (3,573,974) – 54,397,055 (78,219,561) (5,991,200) (3,433,072)
Dividends received from associate
Acquisitions of property and
7,209,951 7,209,951
equipment (Note 11)
Proceeds from disposals of property
(9,383,416) (22,656,248) (12,354,453) (1,914,351) (11,646,122) (8,847,207)
and equipment (Note 11) 415,002 – – 415,002 – –
Acquisition of software (Note 13)
Decrease (increase) in other
(2,177,447) (1,776,967) (667,493) (2,177,447) (1,776,967) (667,493)
noncurrent assets
Net cash provided by (used in)
(2,901,831) (14,904,219) (9,586,732) (962,686) (14,977,022) (9,438,714)
investing activities
CASH FLOWS FROM
FINANCING ACTIVITIES
Proceeds from issuance of shares of
(10,411,715) (39,337,434) 31,788,377 (75,649,092) (34,391,311) (22,386,486)
stock
Payment of transaction costs on initial
– – 811,711,560 – – 811,711,560
public offering – – (30,464,387) – – (30,464,387)
Payment of cash dividends (Note 16)
Proceeds from short-term loans
(26,012,383) (26,607,413) – (26,012,383) (21,990,505) –
payable 350,000,000 405,000,000 – 350,000,000 405,000,000 –
Payment of short term loans payable
Minority interest from consolidated
– – (330,990,661) – – (318,500,000)
subsidiaries
Payment of buy-back of shares
18,576,560 (3,030,967) 5,087,386 – – –
(Notes 16 and 18)
Receipt from the retirement fund for
the transfer of shares acquired
(130,900) (40,663,650) (128,700) (130,900) (40,663,650) (128,700)
through SSPP (Notes 16 and 18)
Net cash provided by financing
808,100 – – 808,100 – –
activities
(Forward)
343,241,377 334,697,970 455,215,198 324,664,817 342,345,845 462,618,473
*SGVMC113951*

- 2 -
Consolidated Parent Company
Years Ended December 31
2009 2008 2007 2009 2008 2007
INCREASE (DECREASE) IN
TRANSLATION
ADJUSTMENTS
NET INCREASE (DECREASE)
IN CASH AND CASH
P=5,340,524 (P=2,123,904) (P=5,270,960) P=– P=– P=–
EQUIVALENTS
CASH AND CASH
EQUIVALENTS AT
130,175,767 150,958,419 321,426,182 (12,213,159) 232,468,576 182,698,959
BEGINNING OF YEAR
CASH AND CASH
EQUIVALENTS AT END
832,637,880 681,679,461 360,253,279 706,875,556 474,406,980 291,708,021
OF YEAR P=962,813,647 P=832,637,880 P=681,679,461 P=694,662,397 P=706,875,556 P=474,406,980
See accompanying Notes to Financial Statements.
*SGVMC113951*

I-REMIT, INC. AND SUBSIDIARIES
NOTES TO 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 26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City. The
Parent Company had its common shares publicly listed with the Philippine Stock Exchange on
October 17, 2007.
The Parent Company and its subsidiaries (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; as well as undertake the delivery of such funds or monies, both in the domestic and
international market, by providing either courier or freight forwarding services; and conduct
foreign exchange transactions as may be allowed by law and other allied activities relative thereto.
PSAGL, on the other hand, provides advisory and other services to the Parent Company.
The Parent Company’s subsidiaries and associates are as follows:
Country of Functional
Effective Percentage of Ownership
December 31
Incorporation Currency 2009 2008 2007
Subsidiaries:
International Remittance Canada Canadian Dollar 100.00 100.00 100.00
(Canada) Ltd. (IRCL)
(CAD)
Lucky Star Management Hong Kong Hong Kong 100.00 100.00 100.00
Limited (LSML)
Dollar (HKD)
IRemit Global Remittance United Great Britain 100.00 100.00 100.00
Limited (IGRL)
Kingdom Pound (GBP)
I-Remit Australia Pty Ltd Australia Australian 100.00 100.00 100.00
(IAPL)
Dollar (AUD)
Worldwide Exchange Australia Australian 65.00 65.00 65.00
Pty Ltd (WEPL)*
Dollar (AUD)
IREMIT EUROPE
Remittance Consulting
AG (IERCAG)
Austria Euro (EUR) 74.90 74.90 –
I-Remit New Zealand New Zealand New Zealand 100.00 100.00 –
Limited (INZL)
Dollar (NZD)
PSAGL
Associates:
Hong Kong Hong Kong
Dollar (HKD)
100.00 100.00 –
IRemit Singapore Pte Ltd Singapore Singapore Dollar 49.00 49.00 49.00
(ISPL)
(SGD)
Hwa Kung Hong & Co., Taiwan New Taiwan 49.00 – –
Ltd.(HKHCL)
Dollar (NTD)
* Consists of direct voting interest of 35.00% and indirect voting interest through IAPL of 30.00%
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The Parent Company is the ultimate parent company of the Group.
On June 29, 2007, the board of directors (BOD) and the stockholders of the Parent
Company approved the following amendments to the articles of incorporation and by-laws
of the Parent Company:
a) On the Articles of Incorporation:
1. Reduction of par value per share from P=100.00 to P=1.00 per share;
2. Increase in the authorized capital stock of the Parent Company from P=200.00 million to
P=1.00 billion;
3. Denial of pre-emptive rights; and
4. Authority of the BOD of the Parent Company to grant stock options, issue warrants or
enter into stock purchase or similar agreements.
b) 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 BOD;
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 Parent Company.
On August 22, 2007, the SEC approved the amended articles of incorporation and by-laws of the
Parent Company.
2. Summary of Significant Accounting Policies
Basis of Preparation
The accompanying financial statements of the Group and of the Parent Company 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 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 are presented under Note 1.
Statement of Compliance
The financial statements of the Group and of the Parent Company have been prepared in
compliance with Philippine Financial Reporting Standards (PFRS).
Basis of Consolidation
The consolidated financial statements include the financial statements of the Parent Company and
its wholly and majority-owned subsidiaries mentioned in Note 1. The financial statements of the
subsidiaries are prepared for the same reporting year as that of the Parent Company using uniform
accounting policies for like transactions and other events in similar circumstances.
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Subsidiaries are all entities over which the Parent Company 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 Parent Company controls another entity.
Subsidiaries are consolidated from the date on which control is transferred to the Parent Company
and cease to be consolidated from the date on which control is transferred out of the Parent
Company. Control is achieved where the Parent Company has the power to govern the financial
and operating policies of an entity so as to obtain benefits from its activities. The results of
subsidiaries acquired or disposed of during the year are included in the consolidated statement of
income from the date of acquisition or up to the date of disposal, as appropriate.
All intra-group balances, transactions, income and expenses and profits and losses resulting from
intra-group transactions are eliminated in full in the consolidation.
Business Combination and Goodwill
Business combinations are accounted for using the purchase accounting method. This involves
recognizing identifiable assets (including previously unrecognized intangible assets) and liabilities
(including contingent liabilities but excluding future restructuring) of the acquired business at fair
value.
Goodwill acquired in a business combination is initially measured at cost being the excess of the
cost of the business combination over the Group’s interest in the net fair value of the acquiree’s
identifiable assets, liabilities and contingent liabilities. 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).
When subsidiaries are sold, the difference between the selling price and the net assets plus
cumulative translation differences is recognized in the statement of income.
Minority Interests
Minority interests represent the portion of net income or loss and the net assets not held by the
Group and are presented separately in the consolidated statement of income, consolidated
statement of comprehensive income and within equity in the consolidated balance sheet, separate
from the equity attributable to equity holders of the Parent Company. Acquisitions of minority
interests are accounted for using the parent entity extension method, whereby the difference
between the consideration and the book value of the share of the net assets acquired is recognized
as an additional goodwill. Any deficiency of the cost of acquisition below the fair values of the
identifiable net assets acquired (i.e., a discount on acquisition) is recognized directly in the
statement of income in the year of acquisition.
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 Philippine Accounting Standards (PAS) and
PFRS and Philippine Interpretations from the International Financial Reporting Interpretations
Committee (IFRIC) which became effective on January 1, 2009:
New Standards
• PAS 1, Presentation of Financial Statements (Revised)
• PAS 23, Borrowing Costs (Revised)
• PFRS 8, Operating Segments
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Amendments to Standards
• PAS 32 and PAS 1 Amendments - Puttable Financial Instruments and Obligations Arising on
Liquidation
• PFRS 1 and PAS 27 Amendments - Cost of an Investment in a Subsidiary, Jointly Controlled
Entity or Associate
• PFRS 2, Amendment - Vesting Conditions and Cancellations
• PFRS 7 Amendments - Improving Disclosures about Financial Instruments
• PAS 39 Financial Instruments - Recognition and Measurement (for periods ending on or after
June 30, 2009)
Philippine Interpretations
• Philippine Interpretation International Financial Reporting Interpretations Committee
(IFRIC) 13, Customer Loyalty Programmes
• Philippine Interpretation IFRIC 16, Hedges of a Net Investment in a Foreign Operation
• Philippine Interpretation IFRIC 18, Transfers of Assets from Customers
Adopted new standards, amendments and interpretations that are deemed to have an impact on the
financial statements or performance of the Group are described below:
PAS 1, Presentation of Financial Statements
The revised standard separates owner and non-owner changes in equity. The statement of changes
in equity will include only details of transactions with owners, with all non-owner changes in
equity presented in a reconciliation of each component of equity. In addition, the standard
introduces the statement of comprehensive income, which presents all items of income and
expense recognized in profit or loss, together with all other items of recognized income and
expense, either in one single statement, or in two linked statements. The revision also includes
changes in titles of some of the financial statements to reflect their function more clearly, although
not mandatory for use in the financial statements. The Group has elected to present two linked
statement of comprehensive income and statement of income and also retained the title of its
balance sheet.
PFRS 8, Operating Segments
PFRS 8 replaced PAS 14, Segment Reporting upon its effective date. The Group concluded that
the operating segments determined in accordance with PFRS 8 are the same as the business
segments previously identified under PAS 14. PFRS 8 disclosures are shown in Note 27,
including the related revised comparative information.
PFRS 7 Amendments - Improving Disclosures about Financial Instruments
The amendments to PFRS 7, Financial Instruments: Disclosures, require additional disclosures
about fair value measurement and liquidity risk. Fair value measurements related to items recorded
at fair value are to be disclosed by source of inputs using a three level fair value hierarchy, by
class, for all financial instruments recognized at fair value. In addition, a reconciliation between
the beginning and ending balance for level 3 fair value measurements is now required, as well as
significant transfers between levels in the fair value hierarchy. The amendments also clarify the
requirements for liquidity risk disclosures with respect to derivative transactions and financial
assets used for liquidity management. The fair value measurement disclosures and liquidity risk
disclosures are presented in Notes 4 and 5, respectively.
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Improvements to PFRSs 2008
The omnibus amendments to PFRSs issued in 2008 and 2009 (with respect to PAS 18, Revenue)
were issued primarily with a view to removing inconsistencies and clarifying wordings. There are
separate transitional provisions for each standard. The adoption of these amendments resulted in
changes in accounting policies but did not have any impact on the financial position or
performance of the Group.
• PAS 18, Revenue
The Amendment adds guidance (which accompanies the Standard) to determine whether an
entity is acting as a principal or as an agent. The features to consider are whether the entity (a)
has primary responsibility for providing the goods or service; (b) has inventory risk; (c) has
discretion in establishing prices; and (d) bears the credit risk. The Group assessed its revenue
arrangements against these criteria and concluded that it is acting as principal in some
arrangements and as an agent in other arrangements.
Foreign Currency Translation
The consolidated financial statements and the Parent Company’s financial statements are
presented in Philippine pesos, which is the Parent Company’s functional and presentation
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 in foreign currencies are initially recorded at the functional currency’s closing rate at
the date of the transaction. For financial reporting purposes, foreign currency-denominated
monetary assets and liabilities are translated in Philippine pesos based on the Philippine Dealing
System (PDS) closing rate prevailing at the balance sheet date, and foreign currency-denominated
income and expenses are translated at the PDS weighted average rate (PDSWAR) for the year.
Exchange differences arising on translation are taken directly to the 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 reporting date, the assets and liabilities of subsidiaries 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 taken directly to other comprehensive income
under ‘Cumulative translation adjustment’. Upon disposal of a foreign entity, the deferred
cumulative amount recognized in other comprehensive income relating to the particular foreign
operation is recognized in the 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.
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Financial Instruments - Initial Recognition and Subsequent Measurement
Date of recognition
Purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or market convention are recognized on the settlement date. Settlement
date is the date on which the transaction is settled by delivery of the assets that are the subject of
the agreement. Settlement date accounting refers to (a) the 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. Any change in the fair value of the financial
asset to be received is recognized in the statement of income for financial assets at FVPL.
Receivables, beneficiaries and other payables, and interest-bearing loans are recognized when cash
is received by the Group or advanced to the borrowers.
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. The Group
categorizes its financial assets as: financial assets at FVPL, differentiating those that are held for
trading (HFT) and those designated as such, loans and receivables, HTM investments and AFS
investments. Financial liabilities are categorized into financial liabilities at FVPL and other
financial liabilities carried at amortized cost. Management determines the classification of its
instruments at initial recognition and, where allowed and appropriate, re-evaluates such
designation at every balance sheet date.
As of December 31, 2009 and 2008, the Group has no financial liabilities at FVPL, AFS
investments and HTM investments.
HFT investments
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.
HFT investments are recorded in the balance sheet at fair value. Changes in fair value are
recognized as ‘Net trading gains’ in the statement of income. Interest earned is recorded as
interest income included under ‘Other 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 investments in debt securities.
Receivables
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 rate (EIR) 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 EIR. Gains and losses are recognized in the 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, Receivables and
Refundable deposits included under ‘Other noncurrent assets’.
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Other financial liabilities
Issued financial instruments or their components, which are not designated as at FVPL, are
classified as other financial liability accounts, 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. Amortized cost is calculated by taking into account any discount or premium on
the issue and fees that are an integral part of the EIR.
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 Group recognizes the difference
between the transaction price and fair value (a Day 1 difference) in the 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 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
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• 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.
Where 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. Where 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 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 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 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
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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 the ‘Provision for impairment and credit losses’ in the statement
of income.
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.
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.
A provision for credit losses is made when there is an objective evidence based on specific and
collective assessment (such as the probability of insolvency or significant financial difficulties of
the debtor) that the Group will not be able to collect all of the amounts due under the original
terms of the invoice. The carrying amount of the receivable is reduced through the use of an
allowance account.
Investments in Subsidiaries and Associates
Subsidiaries
Investments in subsidiaries in the Parent Company’s financial statements are accounted for under
the cost method of accounting. Dividends received are reported as dividend income when the
right to receive the payment is established. Subsidiaries of the Parent Company are shown in
Note 1.
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% interest in ISPL and HKHCL, entities based in Singapore and Taiwan,
respectively.
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Under the equity method, the investment in the associate is carried in the statement of financial
position at cost plus post acquisition changes in the Group's share of net assets of the associate.
The 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 and discloses this, when applicable, in the 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 statement of income.
This is the profit attributable to equity holders of the associate and therefore is profit after tax and
minority interests in the subsidiaries of the associates.
The financial statements of the associate 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
in the statement of income.
Upon loss of significant influence over the associate, the Group measures and recognizes any
remaining investment at its carrying value.
In the Parent Company’s financial statements, investments in associates are accounted for using
the cost method of accounting. Under the cost method, the Parent Company recognizes income
from the investment only to the extent that the investor receives distributions from accumulated
profits of associates arising after the date of acquisition and is reported as dividend income.
Distributions received in excess of such profits are regarded as recovery of investment and are
recognized as a reduction in the cost of the investment.
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.
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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 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 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
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 cash generating unit 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.
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
statement of income when the asset is derecognized.
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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 the assets 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 of IRCL, IGRL,
IAPL, IRCL, LSML, and WEPL (Notes 10 and 12) over the fair value of their identifiable net
assets at the date of acquisition. 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
Investment in Subsidiaries and Associates
The Group assesses at each balance sheet date whether there is any indication that its investment
in subsidiaries and 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 cashgenerating
unit’s (CGU) 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 (or cash-generating unit’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 cash-generating
unit to which it belongs. Where the carrying amount of an asset (or cash-generating unit) exceeds
its recoverable amount, the asset (or cash-generating unit) 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 cash-generating
unit).
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 statement of
income unless the asset is carried at a revalued amount, in which case the reversal is treated as a
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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 cash-generating
unit (or group of CGUs) to which the goodwill relates. Where the recoverable amount of the cashgenerating
unit (or group of CGUs) is less than the carrying amount of the cash-generating unit (or
group of CGUs) to which goodwill has been allocated, an impairment loss is recognized
immediately in the 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
The Group assesses its revenue arrangements against specific criteria in order to determine if it is
acting as principal or agent. 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
following specific recognition criteria must also be met before revenue is recognized:
Delivery fees
Revenue from delivery fees is recognized when the service is rendered net of amounts payable to
principals (i.e., partner remittance companies) for fees billed on their behalf.
Interest income
Interest on financial instruments measured at amortized cost and interest bearing HFT investments
is recognized based on the EIR method of accounting.
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.
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 gains/loss
Trading gains/loss represents results arising from trading activities, including all gains and losses
from changes in fair value of HFT financial assets.
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Dividends
Dividend income is recognized when the Group’s right to receive payment is established.
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.
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 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 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.
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.
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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 an operating lease. Operating lease payments are recognized as an expense in the
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 18) which is subject to a lock-up or vesting period of two (2) years 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, together
with a corresponding increase in equity, over the lock-up period of two (2) years. The cumulative
expense recognized for equity-settled transactions at each reporting 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 statement of income for
the period represents the movement in cumulative expense recognized at the beginning and end of
the period.
Income Taxes
Current income tax
Current income 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 income 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),
*SGVMC113951*

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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.
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 substantively 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 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 equity issuance, such as
underwriting, accounting and legal fees, printing costs and taxes are chargeable 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 against the 'Retained earnings'.
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 of the Group less dividends declared.
Treasury Stock
Own equity instruments which are reacquired (treasury shares) are recognized at cost and
deducted from equity. No gain or loss is recognized in the 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 other capital reserves.
Earnings Per Share
Basic earnings per share (EPS) is computed by dividing net income for the year 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 by the weighted average
number of common shares issued and outstanding during the year after giving effect to assumed
conversion of diluted potential common shares.
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Using the weighted average number of ordinary shares outstanding during the period reflects the
possibility that the amount of shareholders' capital varied during the period as a result of a larger
or smaller number of shares being outstanding at any time. 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 time-weighting 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 on Common Shares
Dividends on common shares are recognized as a liability and deducted from equity when
declared and approved by the respective BOD of the entities in the Group. Dividends for the year
that are approved after the balance sheet date are dealt with as an event after the balance sheet
date.
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 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. Where the Group expects some or all of a
provision to be reimbursed, for example an insurance claim, the reimbursement is recognized as a
separate asset but only when the reimbursement is virtually certain.
Events After Reporting Date
Post year-end events that provide additional information about the Group’s 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 financial statements when material.
Segment Reporting
The Group’s operating businesses are organized and managed separately within a particular
economic environment or geographical areas, with each segment representing a strategic business
unit which is subject to risk and rewards that are different from those of other segments. Financial
information on business segments is presented in Note 27.
Future Changes in Accounting Policies
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
statements.
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Effective in 2010
PFRS 3, (Revised) Business Combinations and PAS 27, Consolidated and Separate Financial
Statements (Amended)
The revised standards are effective for annual periods beginning on or after July 1, 2009. PFRS 3
(Revised) introduces significant changes in the accounting for business combinations occurring
after this date. Changes affect the valuation of non-controlling interest, the accounting for
transaction costs, the initial recognition and subsequent measurement of a contingent
consideration and business combinations achieved in stages. These changes will impact the
amount of goodwill recognized, the reported results in the period that an acquisition occurs and
future reported results. PAS 27 (Amended) requires that a change in the ownership interest of a
subsidiary (without loss of control) is accounted for as a transaction with owners in their capacity
as owners. Therefore, such transactions will no longer give rise to goodwill, nor will it give rise to
a gain or loss. Furthermore, the amended standard changes the accounting for losses incurred by
the subsidiary as well as the loss of control of a subsidiary. The changes by PFRS 3 (Revised) and
PAS 27 (Amended) will affect future acquisitions or loss of control of subsidiaries and
transactions with non-controlling interests. PFRS 3 (Revised) will be applied prospectively while
PAS 27 (Amended) will be applied retrospectively with a few exceptions.
PAS 39 Amendments, Eligible Hedged Items
The amendment to PAS 39, Financial Instruments: Recognition and Measurement, effective for
annual periods beginning on or after July 1, 2009, clarifies that an entity is permitted to designate
a portion of the fair value changes or cash flow variability of a financial instrument as a hedged
item. This also covers the designation of inflation as a hedged risk or portion in particular
situations.
PFRS 2 Amendments, Group Cash-settled Share-based Payment Transactions
The amendments to PFRS 2, Share-based Payment, effective for annual periods beginning on or
after January 1, 2010, clarify the scope and the accounting for group cash-settled share-based
payment transactions.
Philippine Interpretation IFRIC 17, Distribution of Non-cash Assets to Owners
This Interpretation is effective for annual periods beginning on or after July 1, 2009 with early
application permitted. It provides guidance on how to account for non-cash distributions to
owners. The interpretation clarifies when to recognize a liability, how to measure it and the
associated assets, and when to derecognize the asset and liability.
Improvements to PFRSs 2009
The omnibus amendments to PFRSs issued in 2009 were issued primarily with a view to remove
inconsistencies and clarify wordings. The amendments are effective for annual periods beginning
January 1, 2010 except as otherwise stated. The adoption of the following amendments will result
in changes to accounting policies but will not have any impact on the financial position or
performance of the Group.
PFRS 2, Share-based Payment
• Clarifies that the contribution of a business on formation of a joint venture and combinations
under common control are not within the scope of PFRS 2 even though they are out of scope
of PFRS 3, Business Combinations (Revised). The amendment is effective for financial years
on or after July 1, 2009.
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PFRS 5, Non-current Assets Held for Sale and Discontinued Operations
• Clarifies that the disclosures required in respect of non-current assets and disposal groups
classified as held for sale or discontinued operations are only those set out in PFRS 5. The
disclosure requirements of other PFRSs only apply if specifically required for such noncurrent
assets or discontinued operations.
PFRS 8, Operating Segment Information
• Clarifies that segment assets and liabilities need only be reported when those assets and
liabilities are included in measures that are used by the chief operating decision maker.
PAS 1, Presentation of Financial Statements
• Clarifies that the terms of a liability that could result, at anytime, in its settlement by the
issuance of equity instruments at the option of the counterparty do not affect its classification.
PAS 7, Statement of Cash Flows
• Explicitly states that only an expenditure that results in a recognized asset can be classified as
a cash flow from investing activities.
PAS 17, Leases
• Removes the specific guidance on classifying land as a lease. Prior to the amendment, leases
of land were classified as operating leases. The amendment now requires that leases of land
are classified as either ‘finance’ or ‘operating’ in accordance with the general principles of
PAS 17. The amendments will be applied retrospectively.
PAS 36, Impairment of Assets
• The amendment clarified that the largest unit permitted for allocating goodwill, acquired in a
business combination, is the operating segment as defined in PFRS 8 before aggregation for
reporting purposes.
PAS 38, Intangible Assets
• Clarifies that if an intangible asset acquired in a business combination is identifiable only with
another intangible asset, the acquirer may recognize the group of intangible assets as a single
asset provided the individual assets have similar useful lives. Also, it clarifies that the
valuation techniques presented for determining the fair value of intangible assets acquired in a
business combination that are not traded in active markets are only examples and are not
restrictive on the methods that can be used.
PAS 39, Financial Instruments: Recognition and Measurement
• The amendment clarifies the following:
- Prepayment option is considered closely related to the host contract when the exercise
price of a prepayment option reimburses the lender up to the approximate present value of
lost interest for the remaining term of the host contract.
- Scope exemption for contracts between an acquirer and a vendor in a business
combination to buy or sell an acquiree at a future date applies only to binding forward
contracts, and not derivative contracts where further actions by either party are still to be
taken.
- Requires that gains or losses on cash flow hedges of a forecast transaction that
subsequently results in the recognition of a financial instrument or on cash flow hedges of
recognized financial instruments should be reclassified in the period that the hedged
forecast cash flows affect profit or loss.
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Philippine Interpretation IFRIC 9, Reassessment of Embedded Derivatives
• Clarifies that possible reassessment does not apply at the date of acquisition, to embedded
derivatives in contracts acquired in a business combination between entities or businesses
under common control or the formation of joint venture.
Philippine Interpretation IFRIC 16, Hedges of a Net Investment in a Foreign Operation
• States that in a hedge of a net investment in a foreign operation, qualifying hedging
instruments may be held by any entity or entities within the group, including the foreign
operation itself, as long as the designation, documentation and effectiveness requirements of
PAS 39 that relate to a net investment hedge are satisfied.
Effective in 2012
Philippine Interpretation IFRIC 15, Agreements for the Construction of Real Estate
This Interpretation covers accounting for revenue and associated expenses by entities that
undertake the construction of real estate directly or through subcontractors. This Interpretation
requires that revenue on construction of real estate be recognized only upon completion, except
when such contract qualifies as a 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 rewards 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 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:
1) 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);
2) the currency in which funds from financing activities are generated; and
3) the currency in which receipts from operating activities are usually retained.
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b. Operating leases – Group as the lessee
The Group has entered into commercial property leases as a lessee for its office premises. The
Group has determined, based on an evaluation of the terms and conditions of the arrangements
(i.e., the lease does not transfer ownership of the asset to the lessee by the end of the lease
term, the lessee has no option to purchase the asset at a price that is expected to be sufficiently
lower than the fair value at the date the option is exercisable, and the lease term ranges from
one (1) - ten (10) years only), that all significant risks and rewards of ownership of the
properties it leases are not transferable to the Group.
c. Contingencies
The Group is currently involved in various legal 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 28).
d. 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.
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 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 Group’s relationship with counterparties (i.e. 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, 2009 and 2008, no allowance for credit losses on receivables are recorded
since the Group assessed that there was no objective evidence of impairment on the
receivables. Receivables are carried in the balance sheets at P=1,247.52 million and
P=936.88 million as of December 31, 2009 and 2008, respectively, for the Group, and
P=1,305.72 million and P=1,032.02 million as of December 31, 2009 and 2008, respectively, for
the Parent Company (see Note 8).
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b. Impairment of nonfinancial assets
(i) Investment 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 or 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 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 net selling price or value in
use of the CGUs to which the goodwill is allocated. When value in use calculations are
undertaken, management must estimate the expected future cash flows from the asset or
CGU and choose a suitable discount rate in order to calculate the present value of those
cash flows. As of December 31, 2009 and 2008, the Group has determined that there are
no indications that its goodwill may be impaired. Goodwill amounted to P=97.58 million
and P=91.52 million as of December 31, 2009 and 2008, respectively (see Note 12).
(iii) Property and equipment and software costs
The Group assesses impairment on property and equipment and software cost 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 computed using the value in
use approach. Recoverable amounts are estimated for individual assets or, if it is not
possible, for the CGU to which the asset belongs.
As of December 31, 2009 and 2008, no impairment losses were recognized on the Group and
the Parent Company’s nonfinancial assets, including goodwill.
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The carrying values of the Group and Parent Company’s nonfinancial assets as of
December 31 follow:
Consolidated Parent Company
2009 2008 2009 2008
Investments in subsidiaries and
associates (Note 10) P=19,024,162 P=23,699,925 P=245,149,252 P=166,929,691
Property and equipment (Note 11) 27,820,132 30,873,601 11,761,787 17,211,073
Goodwill (Note 12) 97,582,106 91,517,043 – –
Software costs (Note 13) 2,704,684 2,193,133 2,704,684 2,193,133
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. The decrease in the estimated useful life of the property and equipment and
software costs would increase their respective balances and increase the recorded depreciation
and amortization.
As of December 31, the carrying values of Property and equipment and Software costs follow:
Consolidated Parent Company
2009 2008 2009 2008
Property and Equipment (Note 11) P=27,820,132 P=30,873,601 P=11,761,787 P=17,211,073
Software costs (Note 13) 2,704,684 2,193,133 2,704,684 2,193,133
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, 2009 and 2008, the Group’s recognized deferred tax assets amounted to
P=4.83 million and P=0.81 million, respectively. As of December 31, 2009 and 2008, the Parent
Company did not recognize net deferred tax assets on existing deductible temporary
differences amounting to P=5.05 million and P=13.64 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 is 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
balance sheet date. Refer to Note 17 for the details of assumptions used in the calculation. As
of December 31, 2009 and 2008, the present value of the net retirement obligation of the
Parent Company amounted to P=3.63 million and P=5.41 million, respectively (see Note 17).
*SGVMC113951*

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f. Share-based payment transactions
The Group determined the cost of its equity-settled stock purchase program at grant date using
the price earnings multiple model taking into account the terms and conditions upon which the
shares were granted. At year end, 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, P=2.16 million and P=1.00 million in 2009, 2008 and 2007,
respectively (see Note 18).
4. Fair Value Measurement
The following tables summarize the carrying amounts and fair values of the Group’s and Parent
Company’s financial assets and financial liabilities:
Consolidated
2009 2008
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
Financial assets at fair value through
profit or loss
Loans and receivables:
P=65,800,288 P=65,800,288 P=– P=–
Cash and cash equivalents
Receivables:
962,813,647 962,813,647 832,637,880 832,637,880
Agents 1,085,228,800 1,085,228,800 712,559,310 712,559,310
Couriers 54,252,087 54,252,087 74,418,358 74,418,358
Minority shareholder - IERCAG 25,014,743 25,014,743 – –
Related parties 18,927,425 18,927,425 119,883,243 119,883,243
Dividend 7,186,578 7,186,578 – –
Others
Other noncurrent assets:
43,747,994 43,747,994 16,863,509 16,863,509
Refundable deposits 11,299,173 11,299,173 7,601,892 7,601,892
Total
Other Financial Liabilities
Beneficiaries and other payables
P=2,274,270,735 P=2,274,270,735 P=1,763,964,192 P=1,763,964,192
Beneficiaries P=147,449,679 P=147,449,679 P=115,088,386 P=115,088,386
Agents, couriers and trading clients 86,624,144 86,624,144 77,685,038 77,685,038
Accrued expenses 16,219,826 16,219,826 35,903,494 35,903,494
Dividends payable 3,915,372 3,915,372 – –
Advances from related parties 2,489,351 2,489,351 10,367,597 10,367,597
Payable to suppliers 2,243,487 2,243,487 3,648,632 3,648,632
Others 6,497,933 6,497,933 8,152,231 8,152,231
Interest-bearing loans 930,000,000 930,000,000 580,000,000 580,000,000
Total P=1,195,439,792 P=1,195,439,792 P=830,845,378 P=830,845,378
*SGVMC113951*

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Parent Company
2009 2008
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
Loans and receivables
Cash and cash equivalent
Receivables
P=694,662,397 P=694,662,397 P=706,875,556 P=706,875,556
Agents 1,122,923,404 1,122,923,404 706,886,165 706,886,165
Couriers 54,252,087 54,252,087 74,418,358 74,418,358
Related parties 32,043,965 32,043,965 221,442,064 221,442,064
Dividend 23,296,068 23,296,068 – –
Minority shareholder - IERCAG 16,520,681 16,520,681 – –
Others 43,527,627 43,527,627 16,111,115 16,111,115
Refundable deposits 3,601,557 3,601,557 3,541,152 3,541,152
Total
Other Financial Liabilities
Beneficiaries and other payables
P=1,990,827,786 P=1,990,827,786 P=1,729,274,410 P=1,729,274,410
Beneficiaries 147,449,679 147,449,679 113,313,646 113,313,646
Agents, couriers and trading clients 46,987,240 46,987,240 62,511,418 62,511,418
Accrued expenses 6,996,450 6,996,450 15,015,751 15,015,751
Dividends payable – – – –
Payable to suppliers 2,243,487 2,243,487 3,648,632 3,648,632
Advances from related parties 501,577 501,577 65,952,329 65,952,329
Others 7,987,973 7,987,973 16,593,701 16,593,701
Interest-bearing loans 930,000,000 930,000,000 580,000,000 580,000,000
Total P=1,142,166,406 P=1,142,166,406 P=857,035,477 P=857,035,477
The following methods and assumptions were used to estimate the fair value of the financial
instruments:
Cash and cash equivalents, 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 fair value through profit or loss - fair values are based on the quoted market
prices.
Refundable deposits - carrying amounts are deemed to approximate fair values since the fair value
of certain deposits cannot be reasonably and reliably estimated.
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, 2009, the financial instruments carried at fair value only pertain to the
Group’s financial assets at fair value through profit or loss, which consist of investments in debt
securities. The fair values of these debt 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 measurements.
*SGVMC113951*

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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, receivables from agents 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, and liquidity risk. The BOD reviews and approves policies for
managing each of these risks and these are summarized below:
Credit Risk
The nature of its business exposes the Group 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
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 prior to their delivery to the beneficiaries which applies generally to all new agents of
the Group and in certain cases to old agents, the advance funding equivalent to their average daily
remittance transactions, to fulfill or deliver their remittance transactions; (b) 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; (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.
The Group and 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 Group and the Parent Company per
account classification as of December 31, 2009 and 2008 (see Notes 6, 8 and 13):
Consolidated Parent Company
2009 2008 2009 2008
Financial assets at fair value
through profit or loss
Loans and receivables:
P=65,800,288 P=– P= – P=–
Cash and cash equivalents*
Receivables:
913,862,163 780,628,699 652,582,294 660,717,625
Agents 1,085,228,800 712,559,310 1,122,923,404 706,886,165
Couriers
Minority shareholder -
54,252,087 74,418,358 54,252,087 74,418,358
IERCAG 25,014,743 – 16,520,681 –
Related parties 18,927,425 119,883,243 32,043,965 221,442,064
Dividend 7,186,578 – 23,296,068 –
Others
Other noncurrent assets:
43,747,994 16,863,509 43,527,627 16,111,115
Refundable deposits 11,299,173 7,601,892 3,601,557 3,541,152
Total
* excludes cash on hand
P=2,225,319,251 P=1,711,955,011 P=1,948,747,683 P=1,683,116,479
*SGVMC113951*

- 27 -
The table below shows the maximum credit exposure of the Group and the Parent Company per
geographical classification as of December 31, 2009 and 2008 (see Notes 6, 8 and 13):
Consolidated Parent Company
2009 2008 2009 2008
Asia Pacific P=2,035,284,877 P=1,315,158,643 P=1,601,347,252 P=1,299,660,770
Middle East 68,374,702 – 68,374,703 –
North America 61,943,096 255,634,263 206,577,577 228,718,795
Europe 59,716,576 141,162,105 72,448,151 154,736,914
Total P=2,225,319,251 P=1,711,955,011 P=1,948,747,683 P=1,683,116,479
There are no past due receivables as of December 31, 2009 and 2008. The Group classifies its
receivables as high grade. High grade consists of ratings such as excellent, strong, good, and
satisfactory, wherein the borrower has low probability of default and could withstand the normal
business cycle. Financial assets at FVPL which are issued by reputable companies are classified
as high grade.
Foreign Currency Risk
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 and the Parent Company’s exposure to foreign exchange
risk. Included in the tables are the Group and Parent Company’s foreign currency-denominated
monetary assets and liabilities and their PHP equivalent.
Consolidated
2009
Cash and Cash
PHP
Currency
Equivalents Receivables Payables Total Equivalent
CAD 1,509,579 3,586,537 (242,276) 4,853,840 P=215,137,911
USD 1,218,815 1,311,537 – 2,530,352 116,902,262
HKD 18,003,960 191,812 (762,940) 17,432,832 103,849,481
AUD 961,220 1,775,058 (426,159) 2,310,119 94,717,333
NTD – 51,271,915 – 51,271,915 73,381,893
GBP 116,626 725,619 (17,674) 824,571 60,967,497
EUR 660,755 285,307 (56,025) 890,037 59,134,243
SGD 5,654 1,443,109 – 1,448,763 47,645,815
NZD 124,193 310,706 (15,392) 419,507 13,722,212
MYR – – – – –
Net exposure P=785,458,647
Consolidated
2008
Cash and Cash
PHP
Currency
Equivalents Receivables Payables Total Equivalent
CAD 1,153,730 5,289,296 – 6,443,026 P=251,828,185
SGD 10,000 3,558,476 – 3,568,476 116,883,105
AUD 492,067 2,886,525 (100,446) 3,278,146 105,697,837
GBP 64,391 950,122 (103) 1,014,410 71,150,273
USD 1,171,371 56,119 – 1,227,490 58,330,325
EUR 736,856 255,263 (166,545) 825,574 54,731,566
NTD – 37,130,417 – 37,130,417 53,446,574
HKD 1,122,246 2,264772 – 3,387,018 20,768,647
NZD 204,782 186,453 (10,270) 380,965 10,244,718
MYR 33 – – 33 452
Net exposure P=743,081,682
*SGVMC113951*

- 28 -
Parent Company
2009 2008
Cash and Cash
Php Cash and Cash
Equivalents Receivables Total Equivalent Equivalents Receivables Total
PHP
Equivalent
Currency
CAD 20 4,372,293 4,372,313 P=193,803,060 41 5,576,465 5,576,506 P=217,959,912
USD 1,218,815 1,311,537 2,530,352 116,902,262 1,171,371 56,119 1,227,490 58,330,325
AUD 1 1,903,567 1,903,568 78,048,321 3 2,899,532 2,899,535 93,490,215
NTD – 51,271,915 51,271,915 73,381,893 – 37,130,417 37,130,417 53,446,574
GBP 14,752 721,629 736,381 54,446,892 3,366 642,532 645,898 45,302,976
SGD 5,654 1,443,109 1,448,763 47,645,815 10,000 3,558,476 3,568,476 116,883,105
HKD – 1,780,852 1,780,852 10,608,750 – 2,369,507 2,369,507 14,529,434
NZD – 298,940 298,940 9,778,415 – 337,764 337,764 9,082,988
EUR 13,298 203,192 216,490 883,522 10,775 245,382 256,157 16,981,967
MYR – – – – 33 – 33 452
Net exposure P=585,498,930 P=626,007,948
The following tables set forth for the year indicated the impact of reasonably possible changes in
the rates of other currencies on pretax income.
Change in
Consolidated
2009
Change in
nominal
nominal
foreign currency Effect on foreign currency Effect on
Currency
exchange rate pretax income exchange rate pretax income
NTD +1.73 88,700,413 -4.08 (209,189,413)
HKD +0.78 13,597,609 -0.97 (16,909,847)
AUD +3.51 8,108,517 -11.67 (26,959,085)
USD +3.00 7,591,056 -0.33 (835,016)
CAD +1.36 6,600,950 -7.19 (34,897,672)
GBP +7.52 6,200,771 -11.25 (9,276,419)
EUR +4.75 4,227,675 -7.32 (6,515,070)
SGD +1.38 1,999,293 -2.19 (3,172,791)
NZD +1.73 725,748 -4.08 (2,961,052)
MYR – – – –
Change in
Parent Company
2009
Change in
nominal
nominal
foreign currency Effect on foreign currency Effect on
Currency
exchange rate pretax income exchange rate pretax income
NTD +1.73 88,700,413 -4.08 (209,189,413)
USD +3.00 7,591,056 -0.33 (835,016)
AUD +3.51 6,681,524 -11.67 (22,214,639)
CAD +1.36 5,946,346 -7.19 (31,436,930)
GBP +7.52 5,537,585 -11.25 (8,284,286)
SGD +1.38 1,999,293 -2.19 (3,172,791)
HKD +0.78 1,389,065 -0.97 (1,727,426)
EUR +4.75 1,028,328 -7.32 (1,584,707)
NZD +1.73 517,166 -4.08 (1,219,675)
*SGVMC113951*

Currency
Change in
nominal
foreign currency
exchange rate
- 29 -
Consolidated
2008
Change in
nominal
Effect on foreign currency
pretax income
exchange rate
Effect on
pretax income
NTD +1.73 64,235,621 -4.08 (151,492,101)
CAD +3.78 24,354,638 -1.89 (12,177,319)
AUD +6.65 21,799,671 -2.75 (9,014,902)
SGD +1.73 6,173,463 -4.08 (14,559,382)
GBP +5.99 6,076,320 -6.14 (6,228,481)
USD +2.48 3,044,175 -2.30 (2,823,227)
HKD +0.78 2,641,874 -0.97 (3,285,408)
EUR +1.73 1,428,243 -4.08 (3,368,343)
NZD +1.73 659,069 -4.08 (1,554,336)
MYR +1.73 57 -4.08 (135)
Change in nominal
Parent Company
2008
Change in nominal
foreign currency Effect on foreign currency Effect on
Currency
exchange rate pretax income exchange rate pretax income
NTD +1.73 64,235,621 -4.08 (151,492,101)
CAD +3.78 21,079,193 -1.89 (10,539,596)
AUD +6.65 19,281,908 -2.75 (7,973,721)
SGD +1.73 6,173,463 -4.08 (14,559,382)
GBP +5.99 3,868,929 -6.14 (3,965,814)
USD +2.48 3,044,175 -2.30 (2,823,227)
HKD +0.78 1,848,215 -0.97 (2,298,422)
NZD +1.73 584,332 -4.08 (1,378,077)
EUR +1.73 443,152 -4.08 (1,045,121)
MYR +1.73 57 -4.08 (135)
There is no other impact on the Group’s and the Parent Company’s equity other than those already
affecting the profit or loss.
Cash Flow Interest Rate Risk
As of December 31, 2009 and 2008, 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, 2009.
There is no impact on the Group’s equity other than those already affecting the profit or loss.
Consolidated
December 31, 2009
Increase in
basis points
Sensitivity of
trading gains
Currency PHP +50 (3,403,557)
Currency PHP -50 3,963,733
*SGVMC113951*

- 30 -
The Group has no investments in debt securities in prior periods.
Liquidity Risk
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, 2009 and 2008, the Parent Company has unused credit facilities
amounting to P=600.00 million and P=920.00 million, respectively (see Note 15).
The tables below summarize the maturity profile of the Group’s and the Parent Company’s
financial assets held for liquidity purposes and financial liabilities based on undiscounted
contractual payments.
December 31, 2009
Consolidated
Less than 5 days 5 to 30 days 30 to 60 days Total
Financial assets
Cash and cash equivalents
Financial assets at fair value
P=912,511,491 P=50,326,462 P=– P=962,837,953
through profit or loss – – 65,800,288 65,800,288
Receivables from agents 1,085,228,800 – – 1,085,228,800
Financial liabilities
Beneficiaries and other payables
P=1,997,740,291 P=50,326,462 P=65,800,288 P=2,113,867,041
Beneficiaries
Agents, couriers and trading
P=147,449,679 P=– P=– P=147,449,679
clients 86,624,144 – – 86,624,144
Accrued expenses – – 16,219,826 16,219,826
Dividends payable – – 3,915,372 3,915,372
Advances to related parties – – 2,489,351 2,489,351
Payable to suppliers – – 2,243,487 2,243,487
Others – – 6,497,933 6,497,933
Interest-bearing loans – 833,145,972 150,979,514 984,125,486
P=234,073,823 P=833,145,972 P=182,345,483 P=1,249,565,278
December 31, 2008
Consolidated
Less than 5 days 5 to 30 days 30 to 60 days Total
Financial assets
Cash and cash equivalents P=832,637,880 P=– P=– P=832,637,880
Receivable from agents 712,559,310 – – 712,559,310
Financial liabilities
Beneficiaries and other payables
P=1,545,197,190 P=– P=– P=1,545,197,190
Beneficiaries
Agents, couriers and trading
P=115,088,386 P=– P=– P=115,088,386
clients 77,685,038 – – 77,685,038
Accrued expenses
Advances from related
– – 35,903,494 35,903,494
parties – – 10,367,597 10,367,597
Payable to suppliers – – 3,648,632 3,648,632
Others – – 8,152,231 8,152,231
Interest-bearing loans – 291,099,236 293,462,014 584,561,250
P=192,773,424 P=291,099,236 P=351,533,968 P=835,406,628
*SGVMC113951*

- 31 -
December 31, 2009
Parent Company
Less than 5 days 5 to 30 days 30 to 60 days Total
Financial assets
Cash and cash equivalents P=644,360,241 P=50,326,462 P=– P=694,686,703
Receivables from agents 1,122,923,404 – – 1,122,923,404
Financial liabilities
Beneficiaries and other payables
P=1,767,283,645 P=50,326,462 P=– P=1,817,610,107
Beneficiaries
Agents, couriers and trading
P=147,449,679 P=– P=– P=147,449,679
clients 46,987,240 – – 46,987,240
Accrued expenses – – 6,996,450 6,996,450
Advances to related parties – – 501,577 501,577
Payable to suppliers – – 2,243,487 2,243,487
Others – – 7,987,973 7,987,973
Interest-bearing loans – 833,145,972 150,979,514 984,125,486
P=194,436,919 P=833,145,972 P=168,709,001 P=1,196,291,892
December 31, 2008
Parent Company
Less than 5 days 5 to 30 days 30 to 60 days Total
Financial assets
Cash and cash equivalents P=706,875,556 P=– P=– P=706,875,556
Receivable from agents 706,886,165 – – 706,886,165
Financial liabilities
Beneficiaries and other payables
P=1,413,761,721 P=– P=– P=1,413,761,721
Beneficiaries
Agents, couriers and trading
P=113,313,646 P=– P=– P=113,313,646
clients 62,511,418 – – 62,511,418
Accrued expenses
Advances from related
– – 15,015,751 15,015,751
parties – – 65,952,329 65,952,329
Payable to suppliers – – 3,648,632 3,648,632
Others – – 16,593,701 16,593,701
Interest-bearing loans – 291,099,236 293,462,014 584,561,250
P=175,825,064 P=291,099,236 P=394,672,427 P=861,596,727
6. Cash and Cash Equivalents
This account consists of:
Consolidated Parent Company
2009 2008 2009 2008
Cash on hand P=48,951,484 P=52,009,181 P=42,080,103 P=46,157,931
Cash in banks (Note 24) 863,560,007 780,628,699 602,280,138 660,717,625
Short-term deposits 50,302,156 – 50,302,156 –
P=962,813,647 P=832,637,880 P=694,662,397 P=706,875,556
Cash in banks earns 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 2009 and 2008, interest income included in ‘Other income’ amounted to P=7.90 million and
P=7.21 million, respectively, for the Group and P=7.67 million and P=5.26 million, respectively, for
the Parent Company.
*SGVMC113951*

- 32 -
The Group’s and the Parent Company’s cash and cash equivalents denominated in foreign
currency with Philippine peso (PHP) equivalent are as follows:
Consolidated
December 31, 2009 December 31, 2008
Amount PHP equivalent Amount PHP equivalent
HKD 18,003,960 P=107,251,755 1,122,246 P=6,881,430
CAD 1,509,579 66,912,202 1,153,730 45,093,987
USD 1,218,815 56,309,253 1,171,371 55,663,550
AUD 961,220 39,411,037 492,067 15,865,803
EUR 660,755 43,900,727 736,856 48,849,961
NZD 124,193 4,062,391 204,782 5,506,893
GBP 116,626 8,623,157 64,391 4,516,370
SGD 5,654 185,944 10,000 327,543
MYR – – 33 452
P=326,656,466 P=182,705,989
Parent Company
December 31, 2009 December 31, 2008
Amount PHP equivalent Amount PHP equivalent
USD 1,218,815 P=56,309,253 1,171,371 P=55,663,550
GBP 14,572 1,090,740 3,366 236,090
EUR 13,298 883,522 10,775 714,330
SGD 5,654 185,924 10,000 327,543
CAD 20 887 41 1,603
AUD 1 54 3 97
MYR – – 33 452
P=58,470,380 P=56,943,665
Cash in banks earn interest rates ranging as follows:
Consolidated Parent Company
2009 2008 2007 2009 2008 2007
PHP 0.50% 0.50% 1.00% 1.00% 1.00% 1.00%
to 2.00% to 2.00% to 2.00% to 2.00% to 2.00% to 2.00%
Foreign Currency
0.40% 0.40% 1.00% 1.00% 1.00% 1.00%
Denominated
to 2.00% to 2.00% to 4.00% to 2.00% to 2.00% to 2.00%
7. Financial Assets at Fair Value Through Profit or Loss
Financial assets at FVPL consist of investments in private debt securities (listed overseas) held for
trading with an aggregate face value of US $1.57 million. As of December 31, 2009, this includes
net unrealized gain of P=0.14 million. Both realized and unrealized gains and losses on financial
assets at FVPL are included in ‘Net trading gains’ in the statements of income . Interest income
earned in 2009 amounts to P=7.28 million, which is included in ‘Other income’ in the statements of
income (see Note 22).
*SGVMC113951*

8. Receivables
This account consists of receivables from:
- 33 -
Consolidated Parent Company
2009 2008 2009 2008
Agents P=1,085,228,800 P712,559,310 P= 1,122,923,404 P 706,886,165
Couriers 54,252,087 74,418,358 54,252,087 74,418,358
Minority shareholder – IERCAG
(Note 10) 25,014,743 – 16,520,681 –
Related parties (Note 24) 18,927,425 119,883,243 32,043,965 221,442,064
Bureau of Internal Revenue (BIR) 13,160,535 13,160,535 13,160,535 13,160,535
Dividend 7,186,578 – 23,296,068 –
Others 43,747,994 16,863,509 43,527,627 16,111,115
P=1,247,518,162 P 936,884,955 P=1,305,724,367 P=1,032,018,237
Receivables from agents pertain to the advances made to fund the remittance transactions to
beneficiaries and are being settled within 1 to 5 days.
Receivables from couriers pertain to the advances made to the courier companies to ease up the
door-to-door delivery of the remittances to the beneficiaries and are being liquidated within 30 to
60 days.
Receivable from the BIR pertains to the excess payments made for the Initial Public Offering
(IPO) percentage tax amounting to P=13.16 million which had been outstanding since 2007.
‘Others’ include advances to employees, contractors and trading clients for foreign exchange
transactions. These outstanding receivables are due either on demand or within one year.
9. Other Current Assets
This account consists of:
Consolidated Parent Company
2009 2008 2009 2008
Prepaid expenses P=10,376,432 P=10,092,465 P=3,929,033 P=5,286,805
Visa cards inventory 9,308,037 8,277,444 9,308,037 8,277,444
Office supplies 443,118 540,715 443,118 540,715
Deferred input VAT 375,043 764,680 375,043 399,536
Miscellaneous 1,811,793 601,952 – 601,952
P=22,314,423 P=20,277,256 P=14,055,231 P=15,106,452
Prepaid expenses include prepayments for interest, rent, association dues, and advertisements.
‘Miscellaneous’ mainly includes refundable deposits, which are due within one year.
*SGVMC113951*

10. Investments in Subsidiaries and Associates
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The Group and the Parent Company’s investments in subsidiaries and associates consist of the
following:
Consolidated Parent Company
2009 2008 2009 2008
Acquisition cost:
Subsidiaries:
IERCAG P=– P=– P=78,200,341 P=3,554,754
IGRL – – 71,200,000 71,200,000
LSML – – 42,554,665 42,554,665
IRCL – – 13,444,000 13,444,000
WEPL – – 9,033,072 9,033,072
IAPL – – 8,552,000 8,552,000
PSAGL – – 5,958,800 5,958,800
INZL
Associates:
– – 32,400 32,400
ISPL 12,600,000 12,600,000 12,600,000 12,600,000
HKHCL 3,573,974 – 3,573,974 –
Accumulated equity in net
income of ISPL and HKHCL
16,173,974 12,600,000 245,149,252 166,929,691
Beginning balance
Equity in net earnings during
11,099,925 2,226,752 – –
the year 6,146,792 8,873,173 – –
Dividends (14,396,529) – – –
Ending balance 2,850,188 11,099,925 – –
P=19,024,162 P=23,699,925 P=245,149,252 P=166,929,691
Establishment of subsidiaries
IERCAG, INZL and PSAGL
The financial statements of IERCAG were consolidated with the financial statements of the Parent
Company, representing 2.33% and 3.00% of the consolidated assets of the Group as of
December 31, 2009 and 2008, respectively.
The Parent Company’s BOD approved IERCAG’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 IERCAG made a non-refundable shareholders’
contribution amounting to P=99.66 million (equivalent to EUR 1.50 million) to the entity to
strengthen its equity. The additional investments were taken from the outstanding receivables of
the Parent Company from IERCAG amounting to P=91.16 and were recognized by the latter as
capital reserves to wipe out its accumulated deficit amounting to P=52.41 million (equivalent to
GBP 0.56 million). As a result of the application of receivables, the Parent Company recognized a
receivable amounting to 16.52 million from the minority shareholder. The remaining
P=8.50 million was recognized as a receivable from the minority shareholder in the separate
financial statements of IERCAG. The existing ownership ratio of 74.90% and 25.10% was
maintained after the additional contribution was made.
INZL, a subsidiary, started commercial operations on February 13, 2008 and was included in the
consolidated financial statements of the Group at that date. The Parent Company’s BOD approved
its incorporation on August 17, 2007 as a stock corporation to be organized and registered in New
Zealand. Accordingly, the Parent Company made an investment of NZD 1,000 (equivalent to
P=32,400).
*SGVMC113951*

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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.
The acquisition of PSAGL did not result to any goodwill because the acquisition cost is
approximately equal to the fair value of its identifiable net assets at the date of purchase.
Acquisition of subsidiaries
IGRL, IAPL and WEPL
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.
Also, on June 2, 2007, the Parent Company’s BOD 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.
As discussed in Note 1, WEPL is effectively 65.00% owned by the Parent Company through its
direct interest of 35.00% and indirect interest of 30.00% through IAPL. Accordingly, the financial
statements of WEPL have been included in the consolidated financial statements.
The following is a summary of the fair values of the assets acquired and liabilities assumed (which
approximate their respective carrying amounts) as of the date of the acquisition:
IGRL IAPL WEPL Total
(In thousands)
Cash on hand and in banks P=19,332 P=17,011 P=21,486 P=57,829
Receivables 25,827 – 2,174 28,001
Investments – 1,993 – 1,993
Property and equipment 2,049 – 379 2,428
Other noncurrent assets 3,814 – – 3,814
51,022 19,004 24,039 94,065
Accounts payable 29,890 15,910 9,720 55,520
Due to related parties 19,915 1,956 – 21,871
Other liabilities – 265 4,469 4,734
49,805 18,131 14,189 82,125
Net assets 1,217 873 9,850 11,940
Ownership interest acquired 100% 100% 35%
Net assets acquired 1,217 873 3,448 5,538
Goodwill (Note 12) 69,983 7,679 5,585 83,247
Consideration, satisfied by application of
advances to stockholders 71,200 8,552 5,600 85,352
Cash consideration – – 3,433 3,433
Total considerations P=71,200 P=8,552 P=9,033 P=88,785
*SGVMC113951*

- 36 -
Net cash flow from the acquisition of subsidiaries amounted to P=54.40 million, which represents
cash acquired from the subsidiaries amounting to P=57.83 million and cash outlay amounting to
P=3.43 million.
Acquisition of associates
HKHCL
On January 16, 2009, the Parent Company’s BOD approved the acquisition of 49.00% ownership
interest in HKHCL, for a consideration of P=3.57 million (equivalent to NTD 2.45 million).
HKHCL is a remittance business based in Taiwan. Accordingly, on July 1, 2009 (acquisition
date), the Parent Company remitted the cash payment to the existing stockholders of HKHCL.
The fair value of the net assets of HKHCL at acquisition date is P=1.93 million and the fair value of
the 49.00% ownership interest acquired is P=0.95 million. The difference of P=2.62 million between
the consideration paid and the fair value of the interest acquired in HKHCL was recognized as part
of the Parent Company’s investment in HKHCL.
ISPL
On June 2, 2007, the Parent Company’s BOD approved the acquisition of 49.00% ownership
interest in ISPL for a consideration of P=12.60 million. ISPL is based in Singapore. ISPL, which is
in the remittance business, has the same operations as the Parent Company. Accordingly 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 two entities.
The fair value of the net assets of ISPL at acquisition date was P=9.35 million and the fair value of
the 49.00% ownership interest acquired was P=4.58 million. The difference of P=8.02 million
between the consideration paid and the fair value of the interest acquired in ISPL was recognized
as part of the Parent Company’s investment in ISPL.
The Monetary Authority of Singapore has yet to approve the sale of 49.00% equity interest in
ISPL to the Parent Company. Management and its legal counsel believe that the Parent
Company’s application for approval will merit favorable judgment and that any outcome will not
affect the Parent Company’s purchase of 49.00% interest in ISPL.
Minority interest in LSML and IRCL
On June 2, 2007, the Parent Company’s BOD approved the acquisition of 49.00% ownership
interest in LSML and 5.00% ownership interest in IRCL from their respective minority
stockholders for a consideration of P=24.70 million and P=3.10 million, respectively, taking its
ownership in both entities to 100%. Accordingly on June 29, 2007, the respective LSML minority
stockholder (who is also a stockholder of the Parent Company) and IRCL minority stockholder
executed deeds of assignment to transfer their respective ownership interest to the Parent
Company. Under the deeds of assignment, the existing advances by the Parent Company to
certain stockholders were applied as payment for the purchase of LSML and IRCL. The fair value
of the net assets of LSML and IRCL at acquisition date was P=8.23 million and P=11.50 million,
respectively and the fair value of the additional interest acquired was P=4.03 million and
P=0.57 million, respectively. The difference of P=20.67 million and P=2.53 million between the
consideration paid and the minority interest acquired in LSML and IRCL, respectively, was
recognized as goodwill (see Note 12).
*SGVMC113951*

- 37 -
The following tables present the summarized financial information of subsidiaries and associates
as of and for the years ended December 31, 2009 and 2008:
2009
Balance Sheets Statements of Income
Total
Net Income
Total Assets Liabilities Revenue
(In thousands)
Gross Income (Loss)
Subsidiaries:
PAGL 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
IERCAG 57,672 7,355 10,750 9,146 (17,022)
IAPL 28,877 25,058 590 244 3,719
WEPL 27,696 23,595 33,940 32,627 2,975
LSML 21,719 17,771 21,404 21,392 2,236
IGRL 16,217 14,018 62,353 46,910 1,003
INZL 13,113 17,987 8,243 7,580 (2,654)
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
2008
Balance Sheets Statements of Income
Net Income
(Loss)
Total Assets Total Liabilities Revenue
(In thousands)
Gross Income
Subsidiaries:
PAGL P=65,701 P=9,980 P=59,844 P=59,831 P=49,876
IERCAG 53,027 85,290 7,387 6,752 (18,131)
IRCL 52,919 33,039 97,095 85,768 9,842
IGRL 32,970 31,812 63,000 42,241 67
WEPL 24,653 14,407 36,169 34,976 10,693
LSML 9,348 3,825 20,951 20,939 3,134
INZL 8,118 9,780 1,182 1,082 (1,721)
IAPL 5,797 2,179 644 354 3,247
Associate:
252,533 190,312 286,272 251,943 57,007
ISPL 4,206 3,652 44,701 43,682 17,214
P=256,739 P=193,964 P=330,973 P=295,625 P=74,221
*SGVMC113951*

11. Property and Equipment
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The composition of and movements in this account follow:
Office and
Communication
Equipment
Transportation
and Delivery
Equipment
2009
Consolidated
Furniture
and Fixtures
Leasehold
Improvements Total
Cost
Balance at beginning of year P=34,525,351 P=6,455,478 P=9,479,976 P=20,007,390 P=70,468,195
Additions 3,301,124 18,172 9,088 6,055,032 9,383,416
Disposals – (415,002) – – (415,002)
Exchange adjustments 710,270 25,860 (34,382) 1,023,659 1,725,407
Balance at the end of the year 38,536,745 6,084,508 9,454,682 27,086,081 81,162,016
Accumulated Depreciation and
Amortization
Balance at the beginning of the year 21,332,936 1,236,855 4,079,445 12,945,358 39,594,594
Depreciation and amortization 5,866,750 1,160,534 1,667,444 3,859,803 12,554,531
Exchange adjustments 732,788 25,209 (355,167) 789,929 1,192,759
Balance at the end of the year 27,932,474 2,422,598 5,391,722 17,595,090 53,341,884
Net Book Value at End of Year P=10,604,271 P=3,661,910 P=4,062,960 P=9,490,991 P=27,820,132
Office and
Communication
Equipment
Transportation
and Delivery
Equipment
2008
Consolidated
Furniture
and Fixtures
Leasehold
Improvements Total
Cost
Balance at beginning of year P=25,536,540 P=3,428,323 P=4,886,733 P=17,015,596 P=50,867,192
Additions 9,635,877 5,138,517 4,796,594 3,085,260 22,656,248
Disposals – (2,111,362) – – (2,111,362)
Exchange adjustment (647,066) – (203,351) (93,466) (943,883)
Balance at end of year 34,525,351 6,455,478 9,479,976 20,007,390 70,468,195
Accumulated Depreciation and
Amortization
Balance at beginning of year 16,083,892 2,461,263 2,804,793 10,459,574 31,809,522
Depreciation and amortization 5,440,737 886,965 1,276,921 2,506,728 10,111,351
Disposals – (2,111,362) – – (2,111,362)
Exchange adjustment (191,693) (11) (2,269) (20,944) (214,917)
Balance at end of year 21,332,936 1,236,855 4,079,445 12,945,358 39,594,594
Net Book Value at End of Year P=13,192,415 P=5,218,623 P=5,400,531 P=7,062,032 P=30,873,601
Office and
Communication
Equipment
Transportation
and Delivery
Equipment
2009
Parent Company
Furniture
and Fixtures
Leasehold
Improvements Total
Cost
Balance at beginning of year P=21,070,345 P=6,335,961 P=3,683,857 P= 11,410,992 P=42,501,155
Additions 1,553,412 – 9,088 351,851 1,914,351
Disposals – (415,002) – – (415,002)
Balance at end of year 22,623,757 5,920,959 3,692,945 11,762,843 44,000,504
Accumulated Depreciation and
Amortization
Balance at beginning of year 13,967,073 1,222,924 2,155,720 7,944,365 25,290,082
Depreciation and amortization 4,099,718 1,127,708 438,408 1,282,801 6,948,635
Balance at end of year 18,066,791 2,350,632 2,594,128 9,227,166 32,238,717
Net Book Value at End of Year P=4,556,966 P=3,570,327 P= 1,098,817 P= 2,535,677 P=11,761,787
*SGVMC113951*

Office and
Communication
Equipment
- 39 -
Transportation
and Delivery
Equipment
2008
Parent Company
Furniture
and Fixtures
Leasehold
Improvements Total
Cost
Balance at beginning of year P=15,775,911 P=3,428,323 P=2,932,080 P=10,830,081 P=32,966,395
Additions 5,294,434 5,019,000 751,777 580,911 11,646,122
Disposals – (2,111,362) – – (2,111,362)
Balance at end of year 21,070,345 6,335,961 3,683,857 11,410,992 42,501,155
Accumulated Depreciation and
Amortization
Balance at beginning of year 10,338,000 2,461,263 1,774,038 6,749,915 21,323,216
Depreciation and amortization 3,629,073 873,023 381,682 1,194,450 6,078,228
Disposals – (2,111,362) – – (2,111,362)
Balance at end of year 13,967,073 1,222,924 2,155,720 7,944,365 25,290,082
Net Book Value at End of Year P=7,103,272 P=5,113,037 P=1,528,137 P=3,466,627 P=17,211,073
As of December 31, 2009 and 2008, the gross amount of the fully depreciated property and
equipment still in use for the Group and the Parent Company, amounted to P=18.28 million and
P=15.34 million, respectively.
Details of depreciation and amortization follow:
Consolidated Parent Company
2009 2008 2007 2009 2008 2007
Property and equipment P=12,554,531 P=10,111,351 P=7,413,315 P=6,948,635 P=6,078,228 P=4,561,496
Software cost (Note 13) 1,665,896 1,482,668 1,326,400 1,665,896 1,482,668 1,326,400
P=14,220,427 P=11,594,019 P=8,739,715 P=8,614,531 P=7,560,896 P=5,887,896
12. Goodwill
The Parent Company has goodwill amounting to P=4.98 million from its acquisition of the 65.00%
ownership in IRCL. Goodwill aggregating to P=106.46 million relate to the excess of the
acquisition cost over the ownership interest acquired by the Parent Company in IGRL, IAPL,
IRCL, LSML and WEPL in 2007 (see Note 10).
Movements in goodwill for the year 2009 and 2008 follow:
2009 2008
Balance at beginning of year P=91,517,043 P=111,441,191
Exchange adjustment 6,065,063 (19,924,148)
Balance at end of year P=97,582,106 P=91,517,043
Goodwill acquired through business combination has been allocated to five individual CGUs as
follows:
2009 2008
IGRL P=55,479,979 P=52,629,417
LSML 20,804,330 21,421,483
IAPL 7,930,154 6,236,043
IRCL 7,525,310 6,635,859
WEPL 5,842,333 4,594,241
Balance at end of year P=97,582,106 P=91,517,043
*SGVMC113951*

- 40 -
The recoverable amount of the cash generating unit (CGU) has been determined based on a valuein-use
calculation using cash flow projections from financial budgets approved by senior
management covering a five-year period. The discount rate applied to cash flow projections
ranges from 7.41% to 9.13% in 2009 and 9.26% in 2008 and cash flows beyond the five yearperiod
are extrapolated using a steady growth rate of 1% in 2009 and 2008.
The calculation of the value-in-use of the CGU is most sensitive to the following assumptions:
• Growth rate - The forecasted growth rate is based on a very conservative steady growth rate
which 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 value-in-use of the 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.
13. Software Cost and Other Noncurrent Assets
Movements in software cost of the Group follow:
2009 2008
Cost
Balance at beginning of year P=9,247,962 P=7,470,995
Additions 2,177,447 1,776,967
Balance at end of year
Accumulated Amortization
11,425,409 9,247,962
Balance at beginning of year 7,054,829 5,572,161
Amortization (Note 11) 1,665,896 1,482,668
Balance at end of year 8,720,725 7,054,829
Net Book Value at end of year P=2,704,684 P=2,193,133
Other noncurrent assets consist of:
Consolidated Parent Company
2009 2008 2009 2008
Input VAT P=27,821,193 26,918,912 P=27,821,193 P=26,918,912
Refundable deposits 11,299,173 7,601,892 3,601,557 3,541,152
Others 131,008 162,844 44,000 44,000
P=39,251,374 P=34,683,648 P=31,466,750 P=30,504,064
The Parent Company has applied for tax credits on input VAT with the BIR and is awaiting for the
issuance of tax credit certificates (TCCs). Management believes that the Parent Company will be
able to obtain these TCCs for the outstanding input VAT.
Refundable deposits pertain to the security deposit made by the Parent Company and some of its
subsidiaries in relation to rental lease agreement for the office spaces in the Philippines, Hong
Kong, United Kingdom and Canada.
*SGVMC113951*

14. Beneficiaries and Other Payables
This account consists of:
- 41 -
Consolidated Parent Company
2009 2008 2009 2008
Beneficiaries P=147,449,679 P=115,088,386 P=147,449,679 P=113,313,646
Agents, couriers and trading clients 86,624,144 77,685,038 46,987,240 62,511,418
Accrued expenses 16,219,826 35,903,494 6,996,450 15,015,751
Dividends payable 3,915,372 – – –
Withholding tax payable 2,492,773 2,576,215 1,109,836 170,409
Advances from related parties (Note 24) 2,489,351 10,367,597 501,577 65,952,329
Payable to suppliers 2,243,487 3,648,632 2,243,487 3,648,632
Payable to government agency 718,374 462,145 472,972 462,145
Others 6,497,933 8,152,231 7,987,973 16,593,701
P=268,650,939 P=253,883,738 P=213,749,214 P=277,668,031
Payable 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, and professional fees and utilities.
15. Interest-Bearing Loans
This account pertains to the Parent Company’s unsecured, short-term interest-bearing pesodenominated
bank loans.
As of December 31, 2009 and 2008, the outstanding loans payable of the Parent Company
amounted to P=930.00 million and P=580.00 million, respectively.
In 2009, 2008 and 2007, these loans bear annual interest rates ranging from 7.00% to 8.00%,
8.75% to 13.00%, and 7.75% to 9.00%, respectively. In 2009, 2008 and 2007, the Parent
Company recognized interest expense of P=48.68 million, P=13.25 million and P=24.33 million,
respectively.
The Parent Company has an unused credit facility amounting to P=600.00 million and
P=920.00 million as of December 31, 2009 and 2008, respectively.
The loans outstanding as of December 31, 2009 were subsequently paid on various dates in
January and February 2010.
*SGVMC113951*

16. Equity
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Capital Stock
The Parent Company’s capital stock consists of:
2009 2008
Number of Shares Amount Number of Shares Amount
Common stock
Authorized - P=1 par value per share
Issued:
1,000,000,000 P=1,000,000,000 1,000,000,000 P=1,000,000,000
Balance at beginning and end of year 562,417,000 P=562,417,000 562,417,000 P=562,417,000
Less treasury stock (9,329,000) (40,115,150) (10,006,200) (40,792,350)
Issued and outstanding 553,088,000 P=522,301,850 552,410,800 P=521,624,650
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, which
declaration was subsequently ratified and confirmed by the Parent Company’ shareholders during
their annual meeting held on July 17, 2009. The payment was made on May 6, 2009.
On April 25, 2008, the BOD of the Parent Company declared cash dividends amounting to
P=21.99 million or P=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.
The Parent Company’s BOD declared a 10.83% stock dividend worth P=43.00 million to its
shareholders on July 20, 2007, which declaration was subsequently ratified and confirmed by the
Parent Company’s shareholders during their annual meeting held on the same date. The record
date was August 19, 2007. The stock dividends were distributed to the stockholders on August 21,
2007.
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=40.15 million) in 2008 under the Buy-back Program and same number of
shares is outstanding as of December 31, 2009.
In 2009, 2008 and 2007, the Parent Company purchased 130,900 shares (P=0.13 million),
548,500 shares (P=0.55 million) and 128,700 shares (P=0.13 million), respectively, under the SSPP
(see Note 18). The 808,100 shares purchased under the SSPP (see Note 18), were subsequently
transferred in September 2009 to the retirement fund of the Parent Company.
Capital Management
The Group’s capital is composed of its paid-up common stock, additional paid in capital and
retained earnings which amounts to P=1,298.88 million and P=1,183.83 million as of December 31,
2009 and 2008.
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 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.
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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, 2009 and
2008.
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.
17. 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, 2009.
The principal actuarial assumptions used in determining retirement liability for the Parent
Company as of January 1, 2009 and 2008 are as follows:
2009 2008
Discount rate 15.20% 10.15%
Future salary increases 5.00% 8.00%
Expected return on plan assets 5.00% –
Average remaining working life (in years) 31.0 30.4
The discount rate used to arrive at the present value of the obligation as of December 31, 2009 and
2008 are 11.25% and 15.20%, respectively.
The amounts recognized in the balance sheets follow:
2009 2008
Present value of obligation P=10,080,516 P=6,574,511
Fair value of plan assets 12,421,022 3,168,050
Funded Status (2,340,506) 3,406,461
Unrecognized amortization:
Actuarial gain 5,972,129 2,259,981
Transitional liability – (252,228)
Retirement liability P=3,631,623 P=5,414,214
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The movements in the fair value of plan assets in 2009 and 2008 are as follows:
2009 2008
Balance at January 1 P=3,168,050 P=–
Contributions 4,800,000 3,168,050
Actuarial gain 4,452,972 –
Balance at December 31 P=12,421,022 P=3,168,050
The actual return on the plan assets of the Parent Company in 2009 and 2008 amounted to a gain
of P=4.45 million and nil, respectively.
The movements in the present value of obligation are as follows:
2009 2008
Balance at January 1 P=6,574,511 P=7,770,113
Current service cost 1,819,273 1,988,492
Interest cost 999,326 788,666
Actuarial loss (gain) 687,406 (3,972,760)
Balance at December 31 P=10,080,516 P=6,574,511
The amounts of retirement expense included in Salaries, wages and employee benefits in the
statements of income are as follows:
2009 2008 2007
Current service cost P=1,819,273 P=1,988,492 P=1,805,258
Interest cost 999,326 788,666 886,071
Actuarial (gain) losses recognized (53,418) 32,268 224,494
Amortization of transitional liability 252,228 252,227 252,227
P=3,017,409 P=3,061,653 P=3,168,050
The movements in the retirement liability recognized in the balance sheets are as follows:
2009 2008
Balance at January 1 P=5,414,214 P=5,520,611
Retirement expense 3,017,409 3,061,653
Contributions (4,800,000) (3,168,050)
Balance at December 31 P=3,631,623 P=5,414,214
Movements in the unrecognized actuarial (gains) losses are as follows:
2009 2008
Balance at January 1 (P=2,259,981) P=1,745,047
Actuarial gain during the year (3,765,566) (3,972,760)
Actuarial gain (loss) recognized 53,418 (32,268)
Balance at December 31 (P=5,972,129) (P=2,259,981)
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The major categories of plan assets are as follows:
2009 2008
Private equity securities* P=5,091,030 P=–
Deposits in banks 4,843,861 3,168,050
Government debt securities 1,764,648 –
Due from BSP 700,000 –
Interest receivable 32,842 –
Trust fee payable (11,359) –
Balance at December 31 P=12,421,022 P=3,168,050
*This includes P=0.81 million of the Parent Company’s own equity securities bought under SSPP (see Note 18).
The amounts of experience adjustments relating to the plan liabilities of the Parent Company are
as follows:
2009 2008 2007 2006
Present value of obligation P=10,080,516 P=6,574,511 P=7,770,113 P=10,688,426
Fair value of plan assets 12,421,022 3,168,050 – –
Funded status (2,340,506) 3,406,461 7,770,113 10,688,426
Changes in actuarial assumptions 1,070,082 (3,766,312) (9,785,892) 205,718
Experience adjustments on plan
liabilities (382,676) (206,448) 4,176,250 6,424,574
Experience adjustments on plan assets 4,452,972 – – –
The Company expects to contribute P=3.82 million to the plan in 2010.
18. 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 BOD, resource persons and consultants
of the proponents (collectively referred to as “the Participants”) of the Parent Company. 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 Corporation 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 the Parent
Company shares, together with the SSPP shares, was rendered effective on 5 October 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 (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, twenty two (24) employees resigned (nine (9) in 2009, thirteen (13) in
2008 and two (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.
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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 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 17).
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, P=2.16 million in 2008 and P=1.00 million in 2007.
19. Operating Lease Commitments
The Parent Company has entered into the following lease agreements for its office space:
(a) On September 30, 2008, a lease agreement with Sta. Elena Divisoria Condo was made for a
period of sixty (60) months commencing 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 thirty six (36) 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.
(c) On February 7, 2007, a lease agreement with Oakridge Properties (Unit 2503) was made for a
period of thirty six (36) months commencing on February 1, 2007 to January 31, 2010 with a
10.00% escalation on the monthly rental payable every 13th and 25th month of the lease term.
(d) Operating lease agreements with Oakridge Properties (Unit 2603) were entered into for a
period of Twelve (12) months, which commenced on December 01, 2008 and expired on
November 30, 2009. The lease contract was renewed for a period of 2 years commencing
December 1, 2009 to November 30, 2011 with a 10.00% escalation on the aggregate monthly
rental on the 13th month of the lease term.
(e) In December 2005, a lease agreement with Oakridge Properties (Unit 2703) was entered into
for a period of thirty five (35) months, which commenced on February 1, 2006 and expires on
January 31, 2009. Renewal of this contract was made on January 6, 2009 for a period of
twenty four (24) months commencing February 1, 2009 to January 31, 2011 with a 10.00%
escalation rate on the aggregate monthly rental on the 13th month of the lease term.
Rent expense pertaining to these leased office spaces by the Parent Company from Oakridge
Properties, Wynsum Realty, and Sta. Elena Divisoria Condo, amounted to P=11.11 million in 2009,
P=9.48 million in 2008, and P=7.07 million in 2007 (see Note 24). Total rent expense of the Parent
Company amounted to P=11.11 million, P=9.95 million and P=7.37 million in 2009, 2008 and 2007,
respectively.
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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=39.33 million, P=32.53 million, and P=30.15 million in 2009, 2008 and 2007,
respectively.
Future minimum rentals payable under non-cancelable operating leases are as follows:
Consolidated Parent Company
2009 2008 2009 2008
Within one year P=39,529,430 P=30,262,633 P=7,615,824 P=9,956,227
After one year but not more than
five years 79,221,914 22,495,479 6,159,385 10,273,809
More than five years 6,145,388 1,031,976 – –
P=124,896,732 P=53,790,088 P=13,775,209 P=20,230,036
20. Marketing Expenses
This account consists of:
Consolidated Parent Company
2009 2008 2007 2009 2008 2007
Marketing and promotions P= 22,120,718 P=52,311,765 P=29,342,343 P=11,465,823 P=38,631,019 P=22,194,783
Advertising and publicity 10,856,700 5,269,536 1,725,637 3,378,503 5,269,536 1,725,637
P= 32,977,418 P=57,581,301 P=31,067,980 P=14,844,326 P=43,900,555 P=23,920,420
21. Other Operating Expenses
This account consists of:
Consolidated Parent Company
2009 2008 2007 2009 2008 2007
Repairs and maintenance P= 4,634,302 P=3,785,376 P=3,754,837 P=508,566 P=585,834 P=670,218
Taxes and licenses 4,531,430 2,824,233 1,911,044 2,253,135 2,450,304 1,557,933
Association dues 2,066,643 1,623,984 1,228,896 2,066,643 1,623,984 1,228,896
Insurance 1,726,711 1,818,438 1,593,550 754,666 956,624 823,285
Disallowance of input VAT
by BIR 1,338,804 – – 1,338,804 – –
Donations and contributions 1,209,115 – – 1,209,115 – –
Miscellaneous 2,673,515 4,927,248 5,134,826 2,673,515 4,810,182 1,782,044
P=18,180,520 P=14,979,279 P=13,623,153 P=10,804,444 P=10,426,928 P=6,062,376
‘Miscellaneous’ includes various expenses incurred for the business development of potential
foreign offices and other related expenses.
22. Realized Foreign Exchange Gains - Net and Other Income
Realized foreign exchange gains - net represent currency exchange income (net of losses) arising
primarily from trading third currencies to Philippine pesos. These third currencies are collected
from the remittance transactions.
*SGVMC113951*

Other income consists of:
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Consolidated Parent Company
2009 2008 2007 2009 2008 2007
Interest income P=15,181,685 P=7,213,676 P=3,179,220 P=7,670,526 P=5,262,353 P=1,986,501
Rebates 14,608,204 – – 2,595,006 – –
Unrealized foreign
exchange gain - net 5,172,171 4,722,355 4,980,817 5,172,171 4,722,355 2,325,050
Dividends – – – 34,242,442 11,124,039 –
Others 12,488,020 12,847,617 6,532,055 2,594,154 3,197,424
P=47,450,080 P=24,783,648 P=14,692,092 P=52,274,299 P=24,306,171 P=4,311,551
Interest income pertains to interest earned from deposits, short-term placements with banks, and
financial assets at FVPL.
Rebates pertain to the refund of bank service charges and foreign exchange special rates relating to
the remittance transactions of WEPL.
‘Others’ mainly include sub-lease rental income of subsidiaries and claims from insurance of loss
due from theft.
23. Other Charges
Other charges of the Group mainly include filing and regulatory fees paid by foreign offices,
goods and services tax (GST) written off, and other various losses arising from ordinary activities.
24. Related Party Transactions
In the ordinary course of business, the Group transacts with its subsidiaries and with directors,
officers, stockholders and other related interests. 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 in the Parent Company’s statements of income in 2009, 2008 and 2007, include
those arising from clients of subsidiaries and associates as follows:
2009 2008 2007
IRCL P=51,071,109 P=42,169,099 P=30,955,164
IAPL and WEPL 30,787,242 27,782,207 18,582,064
ISPL 27,016,303 22,103,338 15,216,110
HKHCL 25,364,567 – –
IGRL 22,736,884 27,348,257 27,819,528
LSML 9,633,356 7,102,659 5,792,210
IERCAG 4,368,628 2,737,852 –
INZL 2,697,639 454,796 –
P=173,675,728 P=129,698,208 P=98,365,076
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(b) Fees paid to PSAGL, a subsidiary, for services rendered as advisor for various treasury needs
and counsel in connection with issues on financial matters of the Parent Company amounted
to P=47.59 million and P=59.84 million in 2009 and 2008, respectively. Advances from PSAGL
representing the unpaid service fees amounted to P=0.49 million and P=64.03 million as of
December 31, 2009 and 2008, respectively.
(c) The Parent Company leases office spaces from Oakridge Properties. Rent expense amounted
to P=8.17 million, P=8.02 million and P=7.15million in 2009, 2008, and 2007, respectively.
Oakridge Properties is owned by JTKC, one of the stockholders of the Company.
(d) In 2009, the Parent Company subleased an office space in Singapore with Surewell Equities
Pte Ltd., a stockholder. Rental income in 2009 amounted to P=1.03 million
(e) In 2009 and 2008, the Parent Company has funded its retirement plan amounting to
P=4.8 million and P=3.17 million, respectively. This is maintained with SBA, an affiliate, as
trustee.
(f) The Parent Company has deposits amounting to P=129.71 million and P=44.56 million with
SBA, an affiliate, as of December 31, 2009 and 2008, respectively. These deposits earned
P=1.16 million and P=0.11 million interest income in 2009 and 2008, 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:
Consolidated Parent Company
2009 2008 2009 2008
Advances to related parties (Note 8):
Affiliates
Subsidiaries:
P=4,338,803 P=92,463,778 P=3,743,285 P= 91,070,954
IAPL 5,628,134 – 1,261,382 –
I-Remit-USA 1,805,866 1,574,854 1,805,866 1,574,854
INZL 1,261,266 3,575,318 10,617,540 8,404,686
LSML 285,849 – 2,791,720 1,431,991
IERCAG 265,126 – – 39,375,800
PSAGL 2,452 – 878,984 75,973
IGRL – – 5,548,649 12,671,874
IRCL – – 56,610 7,034,622
WEPL
Associates
– – – 3,238,711
HKHCL 2,944,333 7,905,602 2,944,333 7,905,602
ISPL 2,181,783 10,928,314 2,181,783 10,928,314
Others 213,813 3,435,377 213,813 37,728,683
Advances from related parties (Note 14):
P=18,927,425 P=119,883,243 P=32,043,965 P=221,442,064
Affiliates
Subsidiaries
P=2,489,351 P=2,888,071 P=– P=1,920,776
PSAGL – – 494,322 64,031,553
WEPL – – 7,255 –
IERCAG – 6,319,822 – –
IAPL – 883,528 – –
INZL – 276,176 – –
P=2,489,351 P=10,367,597 P=501,577 P=65,952,329
*SGVMC113951*

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Advances to affiliates include cash advances to stockholders, officers, and associates.
As of December 31, 2009 and 2008, no provision for credit losses has been recognized for the
advances to related parties.
In 2008, the Parent Company consolidated the financial statements of IERCAG and the advances
of P=5.33 million were reclassified to receivables from a related party in the Parent Company’s
financial statements, which was previously classified as part of ‘Other Investments’ in 2007.
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). In 2008, the Parent Company’s dividend income includes dividends declared by
LSML (P=2.55 million), and WEPL (P=13.91 million).
The compensation of the key management personnel of the Parent Company in 2009, 2008 and
2007 are as follows:
2009 2008 2007
Short-term employee benefits P=17,836,472 P=16,227,206 P=12,723,344
Post employee benefits 721,632 1,035,615 695,140
Share-based program 435,303 618,250 166,817
P=18,993,407 P=17,881,071 P=13,585,301
25. Income Taxes
The provision for income tax consists of:
Consolidated Parent Company
2009 2008 2007 2009 2008 2007
Current
RCIT P=40,862,007 P=57,164,870 P=8,062,328 P=25,662,740 P=37,616,889 P=1,334,618
Final 1,534,105 1,052,470 – 1,534,105 1,052,470 –
Deferred (2,471,568) – (16,103) – – –
P=39,924,544 P=58,217,340 P=8,046,225 P=27,196,845 P=38,669,359 P=1,334,618
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.
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=2.62 million,
P=4.08 million, and P=3.08 million in 2009, 2008 and 2007, respectively. The allowed EAR limit
was P=2.74 million, P=3.13 million, and P=2.56 million in 2009, 2008 and 2007, 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 Company, it is
limited to the actual EAR paid or incurred but not to exceed 1.00% of net revenue. 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.
*SGVMC113951*

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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 2009 RCIT computation,
the Parent Company elected to claim itemized expense deductions instead of the OSD.
As of December 31, 2009 and 2008, the deferred tax assets and liabilities recognized by the Group
and the Parent Company relates to the tax effects of the following:
Consolidated Parent Company
2009 2008 2009 2008
Deferred tax assets on:
Unused tax losses P=2,848,750 P=723,631 P=– –
Unused tax credits 321,002 – – –
Accumulated depreciation 98,338 86,496 – –
Capital allowances 13,605 – – –
Retirement liability – – 1,143,728 –
Accrued courier charges – – 407,923 –
Subtotal
Less deferred tax liability on:
3,281,695 810,127 1,551,651 –
Unrealized foreign exchange gain – – 1,551,651 –
Net deferred tax assets P=3,281,695 P=810,127 P=– –
The Parent Company did not set up deferred tax assets on the following temporary differences:
2009 2008
Temporary differences on
Accrued courier charges P=2,085,271 P=4,315,879
Accrued interest 1,894,391 –
Accrued leave benefits – 2,377,757
Retirement liability – 5,414,214
Others 1,068,597 1,529,731
P=5,048,259 P=13,637,581
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 2009, 2008
and 2007 follows:
Consolidated Parent Company
2009 2008 2007 2009 2008 2007
Statutory income tax 30.00% 35.00% 35.00% 30.00% 35.00% 35.00%
Tax effects of:
Nondeductible interest expense 0.45 0.41 – 0.76 0.66 –
Interest income subject to
final tax (5.20) (0.42) – (0.77) (0.67) –
Income tax holiday – – (29.96) – – (34.76)
Unrecognized deferred tax asset (2.18) 1.26 1.59 (2.59) 2.02 1.20
Others – (5.32) – – (3.98) –
Effective income tax 23.07% 30.93% 6.63% 27.40% 33.03% 1.44%
*SGVMC113951*

26. Earnings Per Share
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The basis of calculation for EPS attributable to equity holders of the Parent Company follows:
2009 2008 2007
a. Net income attributable to equity holders
of the Parent Company
b. Weighted average number of outstanding
P=136,379,766 P=130,785,730 P=106,365,201
common shares of the Parent Company 552,569,950 558,695,875 201,633,775
c. Basic/diluted earnings per share (a/b) P=0.25 P=0.23 P=0.53
As of December 31, 2009, 2008 and 2007, 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 a strategic business unit. These segments are the bases on which
the Group reports its segment information. Transactions among segments are conducted at
estimated 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 either directly attributable to the segment or can be allocated to the segment on a
reasonable basis.
Segment information as of and for the year ended December 31, 2009, 2008 and 2007 follow:
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
Minority interest
Net income attributable to equity
– – – – 3,231 3,231
holders of the Parent Company
Financial Position
P=129,407 P=92,628 (P=16,020) P=6,725 (P=76,361) P=136,379
Total assets P=2,404,902 P=248,228 P=73,889 P=81,580 (P=320,488) P=2,488,111
Total liabilities
Other Segment Information
P=1,160,025 P=103,799 P=21,373 P=60,602 (P=110,115) P=1,235,684
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
*SGVMC113951*

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2008
North Adjustments
Philippines Asia Pacific Europe
(In thousands)
America and eliminations Total
Financial Performance
Revenue P=475,781 P=118,790 P=70,387 P=97,095 P=– P=762,053
Cost of services (162,302) (1,608) (21,394) (11,327) – (196,631)
Gross income 313,479 117,182 48,993 85,768 – 565,422
Operating expenses (207,181) (50,853) (67,519) (71,826) – (397,379)
Other income (expense) 10,802 13,707 496 606 (5,459) 20,152
Income before income tax 117,100 80,036 (18,030) 14,548 (5,459) 188,195
Provision for income tax (38,669) (14,808) (35) (4,705) – (58,217)
Net income 78,431 65,228 (18,065) 9,843 (5,459) 129,978
Minority interest
Net income attributable to equity
– – – – 808 808
holders of the Parent Company
Financial Position
P=78,431 P=65,228 (P=18,065) P=9,843 (P=4,651) P=130,786
Total assets P=1,970,838 P=113,618 P=85,996 P=52,919 (P=249,793) P=1,973,578
Total liabilities
Other Segment Information
P=873,605 P=40,170 P=117,103 P=33,039 (P=206,412) P=857,505
Capital expenditures P=11,646 P=2,787 P=7,148 P=1,075 P=– P=22,656
Depreciation and amortization P=7,561 P=875 P=1,756 P=1,402 P=– P=11,594
2007
North Adjustments
Philippines Asia Pacific Europe
(In thousands)
America and eliminations Total
Financial Performance
Revenue P=383,743 P=41,445 P=65,465 P=72,255 (P=1,154) P=561,754
Cost of services (127,382) (1,114) (21,841) (4,962) – (155,299)
Gross income 256,361 40,331 43,624 67,293 (1,154) 406,455
Operating expenses (143,965) (32,204) (43,284) (58,254) – (277,707)
Other income (expense) (20,018) 9,383 210 480 2,533 (7,412)
Income before income tax 92,378 17,510 550 9,519 1,379 121,336
Provision for income tax (1,334) (5,106) (130) (1,476) – (8,046)
Net income 91,044 12,404 420 8,043 1,379 113,290
Minority interest
Net income attributable to equity
– – – – (6,925) (6,925)
holders of the Parent Company
Financial Position
P=91,044 P=12,404 P=420 P=8,043 (P=5,546) P=106,365
Total assets P=1,356,661 P=61,963 P=37,205 P=158,888 (P=213,741) P=1,400,976
Total liabilities
Other Segment Information
P=277,359 P=41,530 P=35,921 P=147,148 (P=178,073) P=323,885
Capital expenditures P=8,847 P=1,221 P=1,816 P=470 P=– P=12,354
Depreciation and amortization P=5,888 P=538 P=944 P=1,370 P=– P=8,740
The Group has no intersegment revenues and cost of services in 2009 and 2008.
The Group has no significant customers which contributes 10% or more of the consolidated
revenues.
Segment assets as of December 31, 2009 do not include investments in subsidiaries amounting to
P=228.98 million and inter-segment receivables amounting to P=107.98 million which are eliminated
on consolidation.
Segment assets as of December 31, 2008 do not include investments in subsidiaries amounting to
P=154.33 million and inter-segment loans and receivables amounting to P=201.91 million which are
eliminated on consolidation.
Capital expenditures, which pertain to property, plant and equipment acquired, are disclosed
according to the asset’s physical location.
*SGVMC113951*

- 54 -
The Group’s share in net income of associates amounting to P=6.15 million, P=8.87 million and
P=2.23 million in 2009, 2008 and 2007, respectively, are included under Asia Pacific.
28. Contingencies
The Group has various contingent liabilities arising in the ordinary conduct of business which are
either pending decision by the courts or 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.
29. Approval of the Release of the Financial Statements
The accompanying financial statements of the Group and the Parent Company were approved and
authorized for issue by the BOD on March 19, 2010.
*SGVMC113951*

INDEPENDENT AUDITORS’ REPORT
The Stockholders and the Board of Directors
I-Remit, Inc.
26/F Discovery Centre, 25 ADB Avenue
Ortigas Center, Pasig City
We have audited the financial statements of I-Remit, Inc. and Subsidiaries (the Group) and of I-Remit,
Inc. (the Parent Company), for the year ended December 31, 2009, on which we have rendered the
attached report dated March 19, 2010.
In compliance with the Securities and Regulation Code Rule 68, we are stating that the above
Company has 14 stockholders owning one hundred or more shares.
SYCIP GORRES VELAYO & CO.
Josephine Adrienne A. Abarca
Partner
CPA Certificate No. 92126
SEC Accreditation No. 0466-AR-1
Tax Identification No. 163-257-145
PTR No. 2087359, January 4, 2010, Makati City
March 19, 2010
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
SEC Accreditation No. 0012-FR-2
*SGVMC113951*
A member firm of Ernst & Young Global Limited

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. and Subsidiaries (the Group), included in this Form 17-A and of I-Remit, Inc. (the
Parent Company) and have issued our report thereon dated March 19, 2010. 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,
2009 is the responsibility of the Parent Company’s management. This schedule is presented for the
purpose of complying with the Securities Regulation Code Rule 68.1 and SEC 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
Tax Identification No. 163-257-145
PTR No. 2087359, January 4, 2010, Makati City
March 19, 2010
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
SEC Accreditation No. 0012-FR-2
*SGVMC113951*
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, 2009
Unappropriated retained earnings, as adjusted to available for dividend
distribution, beginning P=102,307,852
Add: Net income earned during the year
Net income during the year 72,074,196
Less: Unrealized foreign exchange gains - net (except those attributable
to cash and cash equivalents) (5,172,171)
Net income actually earned during the year 66,902,025
Add: (Less):
Treasury shares 677,200
Dividend declarations during the year (26,012,383)
Subtotal 41,566,842
Retained earnings available for dividend distribution, ending P=143,874,694
*SGVMC113951*