SEC Form 20-IS - iRemit Global Remittance

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)
Ms. Nancy Joan M. Javier (632) 632-0905
(Contact Person) (Company Telephone Number)
PRELIMINARY
1 2 3 1 2 0 - I S 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.

SECURITIES AND EXCHANGE COMMISSION
SEC FORM 20-IS
INFORMATION STATEMENT PURSUANT TO SECTION 20
OF THE SECURITIES REGULATION CODE
1. Check the appropriate box:
[√] Preliminary Information Statement
[ ] Definitive Information Statement
2. Name of Registrant as specified in its charter I-REMIT, INC.
3. Province, country or other jurisdiction of incorporation or organization
Metro Manila, PHILIPPINES
4. SEC Identification Number A200101631
5. BIR Tax Identification Number 210-407-466-000
6. Address of Principal Office Postal Code
26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City 1605
7. Registrant’s telephone number, including area code (632) 706 – 9999 Loc. 100,105 and109
8. Date, time, and place of meeting of security holders
Date : July 29, 2011
Time : 8:00 a.m.
Venue : 42 nd Floor, Discovery Centre, 25 ADB Avenue, Ortigas Center,
Pasig City
9. Approximate date on which the Information Statement is first to be sent or given to security holders
July 8, 2011
10. Securities registered pursuant to Sections 8 and 12 of the Code (information on number of shares
and amount of debt is applicable only to corporate registrants
Title of Each Class
Number of Shares of Common Stock
Outstanding (as of May 31, 2011)
Common Stock, Par Value PHP 1.00 553,088,000
11. Are any or all of Registrant’s securities listed on a Stock Exchange
[√] Yes [ ] No
If yes, disclose the name of such Stock Exchange and the class of securities listed therein:
The Philippine Stock Exchange, Inc., Common Shares
WE ARE NOT ASKING YOU FOR A PROXY
AND YOU ARE REQUESTED NOT TO SEND US A PROXY
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GENERAL INFORMATION
Date, time and place of meeting of security holders:
Date : July 29, 2011
Time : 8:00 a.m.
Place : 42 nd Floor, Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City
Registrant’s Mailing Address: 26 th Floor, Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City
The approximate date on which the Information Statement is first to be sent to security holders is
July 8, 2011.
Dissenters’ Right of Appraisal
The matters to be voted upon in the Annual Stockholders’ Meeting of I-Remit, Inc. (hereinafter, the
“Company”) on July 29, 2011 are not among the instances enumerated in Sections 42 and 81 of the
Corporation Code of the Philippines whereby the right of appraisal, defined to be the right of any stockholder to
dissent and demand payment for the fair value of his shares, may be exercised. The instances where the right
of appraisal may be exercised are as follows:
1. In case any amendment to the Articles of Incorporation has the effect of changing or
restricting the rights of any stockholder or class of shares, or of authorizing preferences
in any respect superior to those outstanding shares of any class, or of extending or
shortening the term of corporate existence;
2. In case of sale, lease, exchange, transfer, mortgage, pledge, or other disposition of all or
substantially all of the corporate property and assets as provided in the Corporation
Code;
3. In case the Company decides to invest its funds in another corporation or business
outside of its primary purpose;
4. In case of merger or consolidation.
Under Section 82 of the Corporation Code, the appraisal right may be exercised by any stockholder who shall
have voted against the proposed corporate action, by making a written demand on the Company within thirty
(30) days after the date on which the vote was taken for payment of the fair value of his shares. However,
failure to make the demand within such period shall be deemed a waiver of the appraisal right. If the proposed
corporate action is implemented or effected, the Company shall pay to such stockholder, upon surrender of the
certificate or certificates of stock representing his shares, the fair value thereof as of the day prior to the date
on which the vote was taken, excluding any appreciation or depreciation in anticipation of such corporate
action.
If within a period of sixty (60) days from the date the corporate action was approved by the stockholders, the
withdrawing stockholder and the Company cannot agree on the fair value of the shares, it shall be determined
and appraised by three (3) disinterested persons, one (1) of whom shall be named by the stockholder, another
by the Company, and the third by the two (2) thus chosen. The findings of the majority of the appraisers shall
be final, and their award shall be paid by the Company within thirty (30) days after such award is made,
provided that no payment shall be made to any dissenting stockholder unless the Company has unrestricted
retained earnings in its books to cover such payment, and that upon payment by the Company of the agreed
or awarded price, the stockholder shall forthwith transfer his shares to the Company.
Interest of Certain Persons in or Opposition to Matters to be Acted Upon
a. No person who has been a Director or officer or a nominee for election as Director of the
Company, or an associate of such persons, has a substantial interest, direct or indirect,
in any manner to be acted upon other than the election of Directors for the period 2011 –
2012;
b. No Director of the Company has informed the Company in writing that he intends to
oppose any action to be taken by the Company at the meeting.
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Voting Securities and Principal Holders Thereof
CONTROL AND COMPENSATION INFORMATION
A. As of May 31, 2011, the Company has 553,088,000 outstanding common shares. Each
common share shall be entitled to one (1) vote with respect to all matters to be taken up
during the Annual Stockholders’ Meeting.
B. The record date for purposes of determining stockholders entitled to vote in the Annual
Stockholders’ Meeting to be held on July 29, 2011 is set on July 4, 2011.
C. In the forthcoming Annual Stockholders’ Meeting, stockholders shall be entitled to elect
eleven (11) members of the Board of Directors. Each stockholder may vote such
number of shares for as many as eleven (11) persons he may choose to be elected from
the list of nominees, or he may cumulate said shares and give one (1) candidate as
many votes as the number of his shares multiplied by eleven (11) shall equal, or he may
distribute them on the same principle among as many candidates as he shall see fit,
provided that the total number of votes cast by him shall not exceed the number of
shares owned by him multiplied by eleven (11).
D. Security Ownership of Beneficial Owners and Management
(1) Security Ownership of Certain Record and Beneficial Owners
As of May 31, 2011, the Company knows of no one who beneficially owns in
excess of 5% of its common stock except as set forth in the following:
Class
Name and
Address of
Record Owner
and Relationship
with Issuer
Common Stockholder on
record of Issuer:
PCD Nominee
Corporation
G/F Makati Stock
Exchange
Building
6767 Ayala
Avenue, Makati
City (stockholder)
Common Stockholder on
record of Issuer:
Star Equities, Inc.
2/F JTKC Center
2155 Pasong
Tamo, Makati City
Common Stockholder on
Record of Issuer:
Surewell Equities,
Inc.
690-A Quirino
Avenue, Tambo,
Paranaque City
Common Stockholder on
record of Issuer:
JTKC Equities,
Inc.
2/F JTKC Center
2155 Pasong
Tamo, Makati City
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Name and
Address of
Beneficial Owner
and Relationship
with Record
Number of Per Cent
Owner Citizenship Shares Held
(Please see Note
below)
Filipino 219,998,625 39.1166%
Same as Record
Owner
Same as Record
Owner
Same as Record
Owner
Filipino 158,418,225 28.1674%
Filipino 122,043,900 21.6999%
Filipino 43,428,450 7.7218%

Note: The 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 their own behalf or in behalf of their clients. No PCD
Participant currently owns more than five per cent (5%) of the Company’s shares except Fidelity Securities,
Inc., viz:
Class
Common
Name and Address of Owner
and Relationship with Issuer Citizenship
Fidelity Securities, Inc.* Filipino
2/F JTKC Centre
2155 Pasong Tamo, Makati
City
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Number of
Shares Per cent Held
130,176,995 23.1460%
* 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.
The PCD shares of Fidelity include 62,581,775 shares lodged by JTKC Equities, Inc.; thus, the latter’s total
shareholdings is 106,010,225 representing 18.8490% ownership.
The shares of Star Equities, Inc. and JTKC Equities, Inc. shall be voted by
John Y. Tiu, Jr. The shares of Surewell Equities, Inc. shall be voted by
Bansan C. Choa.
(2) Security Ownership of Management
The following are the shares beneficially-owned by the Directors and Executive
Officers of the Company as of May 31, 2011:
Number
Nature of
Legal and
Beneficial
Per Cent
Class Name of Beneficial Owner of Shares Ownership Citizenship of Class
Common Bansan C. Choa
778,000
500,000
Direct
Indirect
Filipino
0.13833%
0.08890%
Common Harris Edsel D. Jacildo 316,300 Direct Filipino 0.05624%
Common Armin V. Demetillo 50,100 Direct Filipino 0.00891%
Common Calixto V. Chikiamco 100 Direct Filipino 0.00002%
Common Gilbert C. Gaw 820,695 Direct Filipino 0.14592%
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. 151,290 Direct Filipino 0.02690%
Common Gregorio T. Yu 100 Direct Filipino 0.00002%
Common Bernadette Cindy C. Tiu
140,900
424,500
Direct
Indirect
Filipino
0.02505%
0.07548%
(3) Voting Trust Holders of 5% or More
The Company is not aware of any party which holds any voting trust or any
other similar agreement for 5% or more of the Company’s voting securities.
(4) Changes in Control
Pending Material Legal Proceedings
The Company is not aware of any arrangement that may result in a change in
control of the Company.
Except as disclosed herein, the Company is not aware of any pending legal proceedings involving the
members of its Board of Directors and its Executive Officers material to an evaluation of their ability and
integrity.

Directors, Executive Officers, Promoters and Control Persons
The following are the incumbent Directors and Executive Officers of the Company who serve as such for a
term of one (1) year from the date of their election or until their successors shall have been duly elected and
qualified:
Name Age Position Period Served
Bansan C. Choa 57 Director; Chairman & Chief Executive Officer Aug 2002 to date
Harris Edsel D. Jacildo 49 Director; President & Chief Operating Officer Aug 2002 to date
Armin V. Demetillo 42 Director and Chairman, Executive Committee July 2009 to date
Gregorio T. Yu 52 Independent Director and Chairman, Audit Committee May 2007 to date
Jose Joel Y. Pusta 58 Independent Director Aug 2002 to date
Calixto V. Chikiamco 61 Director Aug 2002 to date
Gilbert C. Gaw 61 Director Aug 2002 to date
A. Bayani K. Tan 55 Director May 2007 to date
Ben C. Tiu 59 Director May 2007 to date
John Y. Tiu, Jr. 34 Director Aug 2002 to date
Ruben C. Tiu, Jr. 54 Director May 2007 to date
Nancy Joan M. Javier 43 Corporate Secretary Dec 2009 to date
Maria Cecilia V. Soria 35 Assistant Corporate Secretary July 2010 to date
Ma. Elizabeth G. Yao 41 Senior Vice President Aug 2002 to date
Ronald A. Benito 41 Senior Vice President Nov 2010 to date
Bernadette Cindy C. Tiu 32 First Vice President & Chief Financial Officer Apr 2005 to date
Fitzgerald S. Duba 47 Vice President & Compliance Officer Nov 2007 to date
Edwin H. Monzon 56 Vice President May 2011 to date
The business experience for at least the last five (5) years of the Company’s incumbent Directors and
Executive Officers, and those who are also nominated for election as members of the Board of Directors for
2011 – 2012, to serve for a period of one (1) year until successors shall have been qualified, follows:
Bansan C. Choa
Mr. Choa has served as Chairman and Chief Executive Officer of the Company since 2005 and has been a
Director since 2002. He is involved in various businesses in the manufacturing, construction and property
development sectors. He currently holds the following positions: Chairman, Confed Properties, Inc. (1991 to
date); Chairman, Surewell Equities, Inc. (2001 to date); Director, Sterling Bank of Asia, Inc. (2007 to date);
Board Member, Professional Regulatory Board of Real Estate Service (2010 to date); President, Philippine
Retirement, Inc. (2009 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 (Professional Regulation Commission License No. 00002), appraiser
(Professional Regulation Commission License No. 00002), and real estate consultant (Professional Regulation
Commission License No. 00002). He is a certified public accountant (Professional Regulation Commission
License No. 030924). He is active in the real property development and property management field and has
served and continues to hold board and officer positions in housing and real property development
organizations including the Organization of Socialized Housing Developers as Vice President (2001 to 2008),
President(2008 to 2009) and Board Member (2010); Subdivision and Housing Developers Association as First
Vice President (2008), Chairman (2004) 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.
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Harris Edsel D. Jacildo
Mr. Jacildo joined I-Remit, Inc. as Executive Vice President and Chief Operating Officer in February 2002. He
has been a Director, 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 nonprofit
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 nonbank
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.
Armin V. Demetillo
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.
Gregorio T. Yu
Mr. Yu was a Director of I-Remit, Inc. from 2001 to 2004 and was re-elected as an Independent Director of the
Company on May 18, 2007. He is currently the Chairman of CATS Automobile Corporation (2004 to date);
Chairman of CATS Motors, Inc. (2000 to date); Chairman of CATS Asian Cars, Inc. (Mazda Greenhills) (2004
to date); Director, Prople BPO, Inc. (formerly Summersault, Inc.) (2006 to date); Director and Treasurer of
CMB Partners, Inc. (2003 to date); and, President of the Domestic Satellite Corporation of the Philippines
(2001 to date). He is also the Vice Chairman of the Board and the Chairman of the Executive Committee
Sterling Bank of Asia, Inc. (2006 to date) and Chairman and President of Lucky Star Network
Communications Corporation (1994 to date). He is also concurrently a Director of the following companies:
Ripple E-Business International, Inc. (2010 to date); 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); and, Philequity Dollar Income Fund, Inc. (1999 to date). Mr. Yu is also a Trustee of the Government
Service Insurance System (2010 to date). He is also a Board Member of the Ballet Philippines (2009 to date)
and Manila Symphony Orchestra (2009 to date), and a Trustee of the Xavier School, Inc. (1998 to date) and a
Trustee and the Chairman, Ways and Means Committee of the Xavier School Educational and Trust Fund,
Inc. (1998 to date).
Mr. Yu was formerly the President and Chief Executive Officer of Belle Corporation (1989 – 2001). He was
also a Director and a Member of the Executive Committee of The International Exchange Bank (1995 – 2006).
He was also 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.
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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.
Jose Joel Y. Pusta
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.
Calixto V. Chikiamco
Mr. Chikiamco has been a Director of I-Remit since 2002. He is a former columnist of the Manila Standard and
the Manila Times. He has authored two (2) books: “Reforming the System” (Orange Publications and
Kalikasan Press, 1992) and “Why We Are Who We Are” (Foundation for Economic Freedom, 1998). In 2001,
he was awarded by the Archdiocese of Manila for the Best Business Column (“Agriculture, Not IT”, Manila
Standard) in the Catholic Mass Media Awards. He is the founder and CEO of Mobilemoco, Inc. ; founder and
president of MRM Studios, Inc., a company involved in mobile entertainment, digital musical services, and ecommerce
(2001 to date). He also concurrently holds the following positions: Director, UPCC Securities
(1999 to date); Vice Chairman, CBY, Inc. (1999 to date); Director, Golden Sunrise (1984 to date); Director,
APMC (1985 to date); Director, Foundation for Economic Freedom (1996 to date). He is also involved in
several professional and civic organizations such as the Foundation for Economic Freedom where he is the
President. He is also presently a columnist of Business World and a property rights consultant to the Asia
Foundation. He is a member of the Philippine Internet Commerce Society and the Syracuse University Alumni
Association.
Mr. Chikiamco holds a Master’s degree in Professional Studies in Media Administration from the Syracuse
University (New York, USA). He obtained his bachelor’s degree in economics summa cum laude from the De
La Salle University.
Gilbert C. Gaw
Mr. Gaw has been a Director of I-Remit since 2002. He is a businessman 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.
A. Bayani K. Tan
Atty. Tan was the Corporate Secretary of I-Remit from 2001 until 2004 and has been a Director since May
2007. He is currently a Director and Corporate Secretary of the following reporting companies: First Abacus
Financial Holdings Corporation (1994 to date); Sinophil Corporation (1993 to date); TKC Steel Corporation
(2007 to date); Tagaytay Highlands International Golf Club, Inc. (1993 to date); Destiny Financial Plans, Inc.
(2003 to date as Director and 2009 to date as Corporate Secretary).
Mr. Tan has also been the Corporate Secretary and a Director of Sterling Bank of Asia, Inc. (A Savings Bank)
(2007 to date); FHE Properties, Inc. (1995 to date); Club Asia, Inc. (1999 to date); HSAI-Raintree, Inc. (1999 to
date); and Job1 Global, Inc. (2006 to date as Director and 2009 to date as Corporate Secretary). He is also a
Director of the following private companies: Highlands Gourmet Specialist Corp. (2006 to date); Destiny
LendFund, Inc. (2005 to date); and City Cane Corporation (1993 to date).
He is the Corporate Secretary of the following companies: Belle Corporation (1994 to date); Pacific Online
Systems Corporation (2007 to date); Vantage Equities, Inc. (1993 to date); Yehey! Corporation (1994 to date);
Philequity Fund, Inc. (1997 to date); Philequity Peso Bond Fund, Inc. (2000 to date); Philequity Dollar Income
Fund, Inc. (1999 to date); Philequity PSE Index Fund, Inc. (1999 to date); Tagaytay Midlands Golf Club, Inc.
(1997 to date); The Country Club at Tagaytay Highlands, Inc. (1995 to date); The Spa and Lodge at Tagaytay
Highlands, Inc. (1999 to date); Monte Oro Resources & Energy, Inc. (2005 to date); E-Business Services, Inc.
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(2001 to date); Hella-Phil., Inc. (1992 to date); JTKC Equities, Inc. (1998 to date); Goodyear Steel Pipe
Corporation (1999 to date); Star Equities Inc. (2006 to date); Tera Investments, Inc. (2001 to date); Winstone
Industrial Corporation (1998 to date); Winsteel Manufacturing Corporation (1998 to date); JTKC Realty
Corporation (1998 to date); Southern Visayas Property Holdings, Inc. (2003 to date); Pan Asean-Multi
Resources Corporation (1998 to date); Union Pacific Ace Industries, Inc. (1998 to date); The Discovery
Leisure Company, Inc. (2001 to date); Oakridge Properties, Inc. (1998 to date); Discovery Country Suites, Inc.
(2004 to date); JTKC Land, Inc. (2003 to date); Donau Deli, Inc. (2001 to date); Donau Gourmet, Inc. (2007 to
date); Touch Solutions, Inc. (2007 to date); Treasure Steelworks Corporation (2010 to date) and Karen Marie
L. Ty Foundation, Inc. (1995 to date).
He is a Trustee and the Corporate Secretary of Wellington Dee Ty Foundation, Inc. (2004 to date) and Movers
for Renewed Hope (2009 to date). He is also a Trustee (2004 to date) and currently is the Executive Vice
President of UP Law ’80 Foundation, Inc.
Atty. Tan is also the Managing Partner of the law firm of Tan Venturanza Valdez. He also concurrently holds
the following positions: Managing Director, Shamrock Development Corporation (1998 to date); Managing
Trustee, SC Tan Foundation, Inc. (1986 to date); Chairman & President, Yehey! Money, Inc. (2001 to date);
Legal Counsel, Xavier School, Inc. (2005 to date); Director and Corporate Secretary of St. Scholastica’s
Hospital-Catarman, Inc. (2010 to date).
In the last five years, he has held the following positions: Director, Monte Oro Resources and Energy, Inc.
(2005 – 2008); Director, Philequity Fund, Inc. (1997 – 2007); Director, Philequity Peso Bond Fund, Inc. (2000 –
2007); Director, Philequity Dollar Income Fund, Inc. (1999 – 2007); Director, Philequity PSE Index Fund, Inc.
(1999 – 2007); Director, APC Group, Inc. (1996 – 2006); Director, Metro Manila Turf Club, Inc. (1995 – 2006);
Corporate Secretary, International Exchange Bank (1995 – 2006).
Atty. Tan holds a Master of Laws degree from New York University, USA (class of 1988). He obtained his
Bachelor of Laws degree from the University of the Philippines in 1980 where he was a member of the Order
of the Purple Feather (the UP College of Law Honor Society) having ranked ninth in his class. Atty. Tan was
admitted to the Philippine Bar in 1981 after placing sixth in the examinations. He also has a Bachelor of Arts
Degree (Majored in Political Science) from San Beda College (class of 1976) from where he graduated class
valedictorian and was awarded the medal for academic excellence.
Ben C. Tiu
Mr. Ben Tiu has been a Director of I-Remit, Inc. since 2001 and has also served as the Chairman and Chief
Executive Officer of I-Remit, Inc. from 2001 to 2004. He is also the Chairman of the Boards of Sterling Bank of
Asia, Inc. (A Savings Bank) (2007 to date); TKC Steel Corporation (2007 to date); and, The Discovery Leisure
Company (the group behind the Discovery Suites Hotel, The Country Suites at Tagaytay City and Discovery
Shores Boracay) (2001 to date). He is the Corporate Nominee in the Philippine Stock Exchange of Fidelity
Securities, Inc. (1998 to date). He is also a Director of Iremit Singapore Pte Ltd (2001 to date). He also
concurrently holds the following positions: Chairman, Tera Investments, Inc. (2001 to date); President, JTKC
Equities, Inc. (1993 to date); President, Union Pacific Ace Industries, Inc. (1978 to date); President, Britishwire
Industries Corporation (1976 to date); President, Goodway Marketing Corporation (1998 to date); Executive
Vice President, Hotel System Asia, Inc. (1996 to date); Executive Vice President, JTKC Realty Corporation
(1989 to date); Executive Vice President, Pan Asean Multi Resources Corporation (1976 to date); Executive
Vice President and Treasurer, Aldex Realty Corporation (1982 to date); and Vice President, Goodyear Steel
Pipe Corporation (1976 to date). Mr. Tiu was also formerly the Vice Chairman of the Board and Chairman of
the Executive Committee of the International Exchange Bank (1995 – 2006).
He obtained his master in business administration degree from the Ateneo de Manila University Graduate
School of Business in 1977 and his bachelor’s degree in mechanical engineering from the Loyola Marymount
University, USA in 1975.
John Y. Tiu, Jr.
Mr. John Tiu has served as Director of I-Remit since 2002. He is also presently the Chairman and President
of Tera Investments, Inc. (2003 to date); and a Director of Sterling Bank of Asia, Inc. (A Savings Bank) (2007
to date). He is also the Director and Treasurer of the following companies: Star Equities Inc. (2006 to date);
Touch Solutions, Inc. (2001 to date); JTKC Equities, Inc. (2003 to date); JTKC Land, Inc. (2003 to date); The
Discovery Leisure Company, Inc. (2001 to date); Cay Islands Corporation; Palawan Cove Corporation;
Sonoran Corporation; Tofino Corporation; Discovery Country Suites, Inc. (2004 to date). He is a Director of
Oakridge Properties, Inc. (2003 to date); Enderun Colleges, Inc., JT Perle Corporation; One Cerrada
Corporation; Sagesoft Solutions, Inc.; and, Tokyo Holdings, Inc. He is a Director and President of Southern
Visayas Property Holdings, Inc. (2003 to date); Director and First Vice President of JTKC Realty Corporation
(2005 to date); and, the President of Fidelity Securities, Inc. (2002 to date).
8

Mr. John Tiu obtained his bachelor of science in electrical engineering degree (minor in mathematics) from the
University of Washington, USA in 1998.
Ruben C. Tiu
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.
Nancy Joan M. Javier
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 and the New York bar in February 2011 and is a licensed foreign practicing lawyer of
Vietnam, 2008 – 2012. She is a Senior Associate of Tan Venturanza Valdez (2009 to date).
Maria Cecilia V. Soria
Atty. Soria is the incumbent Assistant Corporate Secretary of I-Remit, Inc. She is also the Assistant Corporate
Secretary of the following companies: Sterling Bank of Asia, Inc.; Jolliville Holdings Corporation; Cibt-Sprott
Shaw Education Consulting (Philippines) Inc.; e-Business Services Inc.; FHE Properties Inc.; Highlands
Gourmet; iRipple, Inc.; Philequity Management, Inc.; and, Tagaytay Midlands Golf Club Inc. She obtained her
bachelor of arts degree in political science and bachelor of laws degree from the University of the Philippines
in 1998 and 2006 respectively. She is currently an associate of Tan Venturanza Valdez (2010 to date). She
was formerly connected with Reyes-Fajardo & Associates (2009 – 2010), SGV & Co. (a member practice of
Ernst & Young) (2008 – 2009), and Medialdea Ata Bello & Guevarra law office (2007 – 2008). She was
admitted into the Philippine bar in May 2007.
Ma. Elizabeth G. Yao
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 A. Benito
Mr. Benito joined I-Remit, Inc. in 2010 and currently heads the Company’s international treasury unit in charge
of trading its foreign currencies. He was previously connected with ICAP AP (Singapore) as director of new
business initiatives(2007-2010) and Vice President and Deputy Treasurer of Banco Santander Central
Hispano (2001-2004)
He obtained his bachelor of arts degree in economics cum laude from the University of Santo Tomas in 1991.
He obtained his master of arts degree in international relations (school of politics) in 2005 from the University
of Durham, United Kingdom and his master of science degree in economics and international business in 2007
from City University London.
9

Bernadette Cindy C. Tiu
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.
Fitzgerald S. Duba
Mr. Duba was formerly the 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.
Edwin H. Monzon
Mr. Monzon joined I-Remit, Inc. in 2011 and is currently the head of the Global Sales and Marketing Division.
He has extensive consumer products marketing and sales experience having worked with such companies as
Colgate-Palmolive, Warner-Lambert, Tupperware and Quaker Oats. He has also worked with one of the
leading advertising agencies in the country.
He obtained his bachelor of science in business administration degree from the University of the Philippines in
1976.
Nomination of Directors
The Company’s Board of Directors, inclusive both of independent and regular Directors, were nominated by
the Nomination Committee and elected during the annual stockholders’ meeting to serve for a term of one (1)
year until their successors shall have been duly elected and qualified. Based on the By-laws of the Company,
all nominations shall be submitted to the Nomination Committee by any stockholder of record on or before the
30 th of January of each year to allow the Nomination Committee sufficient time to assess and evaluate the
qualifications of the nominees.
The Nomination Committee is responsible for providing the stockholders with an independent and objective
evaluation and assurance that the membership of its Board is competent and will foster its long-term success
and secure its competitiveness. It is likewise responsible for the review and evaluation of the qualifications of
all persons nominated to positions requiring appointment by the Board and the assessment of the Board’s
effectiveness in directing the process of renewing and replacing Board members. The Company’s Nomination
Committee is composed of three (3) members, namely: Messrs. Bansan C. Choa, Armin V. Demetillo,
Gregorio T. Yu (Independent Director), and Ms. Catherine M. Chan (Head, Human Capital Management
Department).
Independent Directors
Pursuant to the principles of good corporate governance, the Company currently has two (2) independent
directors. As used in Section 38 of the Securities Regulation Code (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. Each independent
director of the Company shall submit to the Corporate Secretary a letter of confirmation stating that he holds
no interest affiliated with the Company, management or the Company’s substantial shareholders at the time of
his election or appointment and/or re-election as a director.
10

On 10 March 2011, during its meeting called for that purpose, the Company’s Nomination Committee indorsed
the respective nominations given in favor of Mr. Gregorio T. Yu by Mr. Danilo C. Belleza, Jr. and Mr. Jose Joel
Y. Pusta by Mr. Armando S. Dizon. Except as co-stockholders of the Company, the nominees Messrs. Yu and
Pusta are not related to the respective persons nominating them, Mr. Belleza and Mr. Dizon, respectively.
Copies of the certifications of qualifications of independent directors are attached as Annexes “B” and “B-1”.
Significant Employees
The Company has no significant employees.
Family Relationships among Directors
Messrs. Ben C. Tiu, Ruben C. Tiu and John Y. Tiu, Jr. are siblings.
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, specific performance, quieting of title and
reimbursement, damages with request for receivership and preliminary attachment (Civil
Case Nos. MC03-075, MC03-077, and MC04-082) before the RTC of Mandaluyong City,
which cases have been settled and the RTC Mandaluyong has, on 08 February 2006,
promulgated a Joint Decision approving the Settlement Agreement, Supplemental
Agreement, and Second Supplemental Agreement re: Civil Case Nos. MC03-077 and
MC04-082. RTC Mandaluyong, noting the settlement of Civil Case Nos. MC03-077 and
MC04-082, likewise issued an Order dated 18 May 2006 re: Civil Case No. MC-075
holding that the aforementioned settlement agreement likewise puts an end to Civil Case
No. MC03-075, as it involves substantially similar factual antecedents, and holding
further that the complaint and counterclaims of the parties are withdrawn with prejudice.
While the main cases have been settled, a group of ULCI members who were not
included in the settlement and are not in favor of its terms have initiated suit to nullify the
same. RTC Mandaluyong has rejected such moves to assail the settlement, prompting
said group to elevate their complaint to the Court of Appeals. The Court of Appeals
partially granted the group’s prayer and revived the writs of attachment and garnishment
but only to such extent as to cover the remaining claims. Respondents filed a timely
petition with the Supreme Court, where it is currently pending.
ii. A Complaint for Estafa (docketed as I.S. No. 08-K-19713) filed before the City
Prosecutor of Manila. A Counter-Affidavit has already been filed before the City
Prosecutor seeking to dismiss the Complaint for lack of cause of action.
Except as provided above, the Company is not aware of any of the following events wherein any of its
directors, executive officers, nominees for election as director, executive officers, underwriter or control
persons were involved during the past five (5) years up to the latest date.
(1) Any bankruptcy petition filed by or against any business of which any of the above
persons was a general partner or executive officer either at the time of the bankruptcy
or within two years prior to that time;
(2) Any order or judgment, or decree, not subsequently reversed, suspended or vacated, by
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.
11

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.
Certain Relationships and Related Party Transactions
In the ordinary course of business, the Company engages in transactions with its subsidiaries and associates
consisting of delivery of services for a fee.
The Company, as Lessor, entered into four (4) Lease Agreements covering its occupancy of its offices at the
25th, 26th and 27th 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 2010 and
2009, the Company funded its retirement plan amounting to PHP 5.2 million and PHP 4.8 million, respectively,
from accounts maintained with Sterling Bank of Asia. The 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
the Company.
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, and Atty. Ma. Cecilia V. Soria, Assistant Corporate Secretary are
senior associate and associate, respectively. During the year, the Company paid Tan Venturanza Valdez
certain legal fees that the Company believes to be reasonable for the services rendered.
Disagreement with Director
None of the Directors have resigned or have declined to stand for re-election to the Board of Directors since
the date of the last annual meeting of the stock holders because of a disagreement with the Company on any
matter relating to the Company’s operations, policies, or practices.
12

Compensation of Directors and Executive Officers
The following table summarizes the aggregate compensation paid or which has 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 Position Aggregate Compensation
Bansan C. Choa Chairman & CEO
2011
(Estimate)
2010
(Actual)
2009
(Actual)
Harris E. D. Jacildo President & COO
Ma. Elizabeth G. Yao SVP
Ronald A. Benito SVP
Bernadette Cindy C. Tiu FVP & CFO
13
9,351,421.64
All other officers and directors as a group unnamed 10,444,171.05
Bansan C. Choa Chairman & CEO
Harris E. D. Jacildo President & COO
Ma. Elizabeth G. Yao SVP
8,658,723.75
Ronald A. Benito SVP
Bernadette Cindy C. Tiu FVP & CFO
All other officers and directors as a group unnamed 9,593,788.01
Bansan C. Choa Chairman & CEO
Harris E. D. Jacildo President & COO
Ma. Elizabeth G. Yao SVP
7,799,458.36
Bernadette Cindy C. Tiu FVP & CFO
Ronald C. Santos FVP
All other officers and directors as a group unnamed 7,721,889.54
The Company’s Directors have not received any form of compensation from inception up to the present other
than a per diem for each meeting attended. There is no employment contract between the Company and the
above-named executive officers or current executive officers. In addition, except as provided below, there are
no compensatory plans or arrangements with respect to the named executive officers that resulted in or will
result from the resignation, retirement or termination of such executive director or from a change-in-control in
the Company.
On July 20, 2007, the Company’s Board of Directors approved a proposal to set up a Special Stock Purchase
Program (“SSPP”) of 15,000,000 shares for the employees of the Company who have been in service for at
least one (1) calendar year as of June 30, 2007 as well as members of the Board, resource persons and
consultants of the Company (collectively referred to as the “Participants”). A Notice of Exemption under
Section 10.2 of the Securities Regulation Code was filed with 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 Company to include the SSPP shares among the shares of the Company which were
registered with the SEC prior to the conduct of its initial public offering on October 17, 2007. The registration
of the Company shares, together with the SSPP shares, was rendered effective on October 5, 2007.
All 15,000,000 shares were exercised. The shares subject to the SSPP were sold at par value or PHP1.00 per
share. Total shares amounting to PHP11.74 million were paid in full, while the difference totaling 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.
The sale was further subject to the condition that should the officer or 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 as Treasury stock. As of December 31, 2009, twenty four (24)
employees resigned and their shares totaling 808,100 were bought back by the Company.
As approved by the Company’s Board, 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 PHP1.33 per share. This transaction also
resulted in an increase in equity by PHP1.53 million, PHP2.16 million and PHP1.00 million recognized as
“Share-based payment’ under equity in 2009, 2008 and 2007 respectively.
On September 19, 2009, which was the end of the lock-up period, the 808,100 shares bought back at cost
were transferred to the Company’s retirement fund upon reimbursement of the PHP0.81 million paid by the
Company for those shares.

The expense arising from the share-based payment plan is recognized over the two-year lock-up period. The
expense recognized under Salaries, Wages, and Employee Benefits in the statements of income amounted to
PHP1.53 million in 2009, PHP2.16 million in 2008, and PHP1.00 million in 2007.
Independent Public Accountants
The accounting firm of SyCip Gorres Velayo & Co. (“SGV”) will be nominated and recommended to security
holders for appointment as External Auditors for the period 2011 – 2012. Representatives of SGV are
expected to be present in the Annual Shareholders’ Meeting to respond to appropriate questions and to make
a statement if they so desire. In compliance with SRC Rule 68(3)(b)(iv) as amended on the rotation of
External Auditors, the audit of the financial statements of the Company was handled and certified by the
engagement partner, Ms. Josephine Adrienne A. Abarca, effective calendar year 2010.
The Company’s Board of Directors reviews and approves the engagement of the Company’s external auditors,
who are appointed upon the recommendation of the Audit Committee. The Audit Committee is composed of
the following: Mr. Gregorio T. Yu (Independent Director) as Chairman, and Messrs. Bansan C. Choa, John Y.
Tiu, Jr. and Harris E. D. Jacildo as Members.
Engagement agreements are executed for every type of engagement which provides for the scope of work,
timetable, fees, engagement team, etc. for each project.
The audit and audit-related fees paid by the Company in the last two (2) years are as follows:
Fees 2010 2009
A. Audit and Audit-Related Fees
1. Audit of the Registrant’s annual financial statements or services that
are normally provided by the external auditor in connection with the
statutory and regulatory filings or engagements
2. Other assurance and related services by the external auditor that are
reasonably related to the performance of the audit or review of the
Registrant’s financial statements
14
PHP605,000.00
(exclusive of VAT)
PHP 600,000.00
(exclusive of VAT)
--- ---
B. Tax Fees --- ---
C. All Other Fees --- ---
Compensation Plans
As described above, the Company has the SSPP or a stock option plan covering the employees of the
Company who have been in service for at least one (1) calendar year as of June 30, 2007 as well as members
of the Board, resource persons and consultants of the Company. A total of 15,000,000 shares of the
Company, at a par value of PHP1.00 per share, were allocated under the SSPP.
ISSUANCE AND EXCHANGE OF SECURITIES
Authorization or issuance of Securities other than for Exchange
On June 17, 2011, the Board of Directors authorized the declaration of 55,308,800 common shares stock
dividend, with a par value of PHP1.00 per share or an aggregate par value of PHP 55,308,800.00, out of the
unrestricted retained earnings of the Company as of December 31, 2010. The stock dividend, which is
equivalent to 10% of the issued and outstanding shares of the Company, will be taken from the unissued
capital stock of the Company, and will be submitted to the Securities and Exchange Commission for approval.
Pursuant to the provisions of the Corporation Code, the aforementioned stock dividend declaration will be
submitted for stockholders’ approval during their annual meeting on July 29, 2011.

OTHER MATTERS
Action with Respect to Reports
The Company will seek the stockholders’ approval of the Minutes of the 2010 Stockholders’ Meeting during
which the following were taken up: (i) Call to Order; (ii) Certification of Notice and Quorum; (iii) Approval of the
Minutes of the Previous Stockholders’ Meeting; (iv) President’s Report and 2010 Financial Statements; (v)
Ratification of All Acts and Resolutions of the Board of Directors, Officers and Management of the Company;
(vi) Election of Directors; (vii) Appointment of SGV & Co. as External Auditors; and (viii) Approval of the
Declaration of Stock Dividend.
Management reports will be submitted for approval by the stockholders at the meeting. Approval of the reports
will constitute approval and ratification of the acts of Management for the past year.
Acts of the Board of Directors
The items covered with respect to the ratification of the acts of the Board of Directors and officers for the past
year up to the date of the meeting are those items entered into in the ordinary course of business, such as, but
not limited to: the opening of bank accounts and designation of bank signatories; the availment of credit and
banking facilities and approvals concerning daily operations in the Company’s foreign offices.
The minutes of the Annual Stockholder’s meeting held on July 23, 2010 and the relevant resolutions approved
by the Board of Directors for ratification by the stockholders are attached as Annexes “E” and “F”.
Voting Procedures
(a) Actions to be taken at the Annual Stockholders’ Meeting shall require the vote of the
stockholders representing at least a majority of the Company’s outstanding capital
stock.
(b) The approval of the declaration of stock dividend shall require the affirmative vote of
stockholders representing at least two-thirds of the issued and outstanding capital stock
of the Company.
(c) Three (3) inspectors shall be appointed by the Board of Directors before or at each
meeting of the stockholders, at which an election of directors shall take place; if no such
appointment shall have been made or if the inspectors appointed by the Board of
Directors refuse to act or fail to attend then the appointment shall be made by the
presiding officer of the meeting.
(d) Stockholders may vote at all meetings either in person or by proxy duly given in writing
in favor of any person of their confidence and each stockholder shall be entitled to one
vote for each share of stock standing in his name in the books of the Corporation;
provided, however, that in the election of Directors, each stockholder shall be entitled to
cumulate his votes in the manner provided for by law.
(e) The By-Laws of the Company is silent as to the method by which votes are to be
counted. In practice, however, the same is done by the raising of hands or viva voce.
(f) With respect to the election of eleven (11) directors, each stockholder may vote such
number of shares for as many as eleven (11) persons he may choose to be elected
from the list of nominees, or he may cumulate said shares and give one (1) candidate
as many votes as the number of his shares multiplied by eleven (11) shall equal, or he
may distribute them on the same principle among as many candidates as he shall see
fit, provided that the total number of votes cast by him shall not exceed the number of
shares owned by him multiplied by eleven (11).
(g) Upon confirmation by the inspectors that there is a mathematical impossibility for certain
nominees to be elected into office based on proxies held and votes present or
represented in the meeting, the actual casting and counting of votes for the election of
Directors may be dispensed with.
(h) Counting of the votes will be done by the Corporate Secretary with the assistance of the
external auditors and the Company's stock transfer agent.
Items 10, 11, 12, 13, 14, 16, 17 and 18 are not responded to in this report, the Company having no intention to
take any action with respect to the information required therein.
15

Business and General Information
I-REMIT, INC.
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 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 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.
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, the Home
Development Mutual Fund, the Philippine Retirement Authority and the Philippine Health Insurance
Corporation, as well as various insurance, pre-need and real estate companies.
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.
The Company currently operates in 27 countries and territories worldwide.
The Company’s presence in various countries hosting 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’s subsidiaries are as follows:
International Remittance (Canada) Ltd., a wholly-owned subsidiary, was incorporated on July 16, 2001. It
started initially as a tie-up and partner of I-Remit, establishing its operations in three (3) major provinces in
Canada, namely: British Columbia, Alberta and Ontario. In 2005, I-Remit acquired 65% ownership in the
company that subsequently increased to 95% in 2006, and eventually consolidated to 100% on June 29, 2007.
International Remittance (Canada) Ltd. has seven (7) offices in Canada: two (2) in British Columbia; three (3)
in Ontario; and two (2) in Alberta. The Filipino community is the third largest minority group in Canada. There
are 350,000 Filipino migrant families and about 500,000 Filipinos in Canada mostly in Toronto, Montreal, and
Vancouver. However, the Commission on Filipinos Overseas in its Stock Estimate of Overseas Filipinos
(December 2009) estimates that there are 639,686 Filipinos in the country.
I-Remit Australia Pty Ltd, a wholly-owned subsidiary, is a company organized under the Australian
Corporations Act 2001 and registered with the Australian Securities and Investments Commission with
Australian Company Number 103 107 982. It was incorporated on December 10, 2002 in Victoria, Australia
and as of June 29, 2007, the Company’s ownership in I-Remit Australia has been consolidated to 100%. It
has no regular employees and has not engaged, since incorporation, in any material activities other than those
related to the maintenance of a bank account with ANZ Bank (Australia and New Zealand Banking Group
Limited) where I-Remit’s subsidiary and 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.
17

IREMIT EUROPE Remittance Consulting AG (74.9% owned) was incorporated on July 20, 2005 in Vienna,
Austria. It started commercial operations on September 16, 2007. There are about 30,000 Filipinos in Austria.
In November 2009, IREMIT EUROPE Remittance Consulting AG was registered by Banca D’Italia
Eurosistema in the general list of financial intermediaries as a provider of money transfer services under
Article 106 of the legislative decree 385/1993 of Italy’s Banking Law. On April 18, 2010, it opened a branch in
Rome. On August 1, 2010, it opened its second branch in Milan. Italy is the second most popular destination
of overseas Filipino workers in Europe. Numbering about 200,000, the vast majority of Filipinos work in the
domestic service sector while there are also a number employed in the nursing field and other skilled and
semi-skilled occupational groups.
IRemit Global Remittance Limited, a wholly-owned subsidiary, is a private limited company in the United
Kingdom and Wales that was incorporated on June 22, 2001. It is registered with The Registrar of Companies
for England and Wales, Companies House with Company Number 04239974. It started commercial operations
in July 2001. Initially, the Company had a 96% equity interest in the IRemit Global Remittance Limited until it
was sold on January 18, 2004. I-Remit repurchased it on June 29, 2007 and acquired 100% ownership
interest. Filipinos are the fourth largest source of immigrants to the United Kingdom. There were
approximately 200,000 Filipinos living and working in the United Kingdom as nurses, caregivers in public and
private nursing homes, medical professionals and chambermaids.
I-Remit New Zealand Limited, a wholly-owned subsidiary was incorporated on September 11, 2007. Its
registration was approved by the New Zealand Ministry of Economic Development last September 11, 2007. It
is registered with the Registrar of Companies of New Zealand, Companies Office with Company Number
1984331. The company started operating commercially on February 13, 2008. There are over 20,000 Filipinos
in New Zealand.
Lucky Star Management Limited, a wholly-owned subsidiary, was incorporated on March 16, 2001 as a limited
liability company under the Companies Ordinance of Hong Kong whose principal activity is the provision of
remittance services. It is registered with the Companies Registry with Company Number 750525. It was the
first international branch of I-Remit and, to date, it has four (4) branches in Hong Kong: two (2) at the Central
District, one (1) at the Admiralty, and one (1) in Tsuen Wan. Hong Kong is one of the top destinations of landbased
OFWs in Asia. There are on average around 140,000 Filipinos in Hong Kong, most of whom find work
as domestic household helpers.
Power Star Asia Group Limited, a wholly-owned subsidiary, was incorporated on April 28, 2008 under the
Companies Ordinance of Hong Kong. It is engaged in foreign exchange trading activities. It was acquired by
I-Remit on November 12, 2008 with the purchase of its 1,000,000 outstanding shares for a total consideration
of HKD1,000,000 with the intention of outsourcing some of the Parent Company’s foreign exchange activities
to a company located in one of the regional financial centers in Asia. It is registered with the Companies
Registry with Company Number 1232132.
Worldwide Exchange Pty Ltd (consisting of direct voting interest of 70% and indirect voting interest through I-
Remit Australia Pty Ltd of 30%) was incorporated on September 29, 2003 in Queensland, Australia. It is duly
registered with the Australian Securities and Investments Commission in Queensland, Australia with Australian
Company Registration Number 106493047. It started commercial operations in September 2002. It currently
has two (2) branches located in Blacktown and in Perth, Western Australia. The Filipino-Australian community
is composed of approximately 200,000 immigrants, many of whom moved to Australia from the Philippines in
the early 1980’s.
The Company’s associates are as follows:
IRemit Singapore Pte Ltd (49% owned) is a private limited company incorporated in Singapore whose principal
business activity is to carry on the business of money remittance services. It was incorporated on May 11,
2001 and started commercial operations in October 2001. It is duly registered with the Registrar of
Companies and Businesses Singapore, Accounting and Corporate Regulatory Authority with Company
Number 200103087H. There are about 136,000 Filipinos in Singapore who work as household workers,
medical workers, IT professionals, and construction workers.
Hwa Kung Hong & Co. Ltd. (49% owned) is a company engaged in the remittance business in Taiwan. It has
offices in Taipei and Kaohsiung. It has Taipei City Business Number 00078598-2 and Business Enterprise
(For Profit) Unified Number 14033431. On January 9, 2009, the Board of I-Remit authorized the acquisition of
up to 49% of the outstanding capital stock of Hwa Kung Hong & Co. Ltd. The acquisition of the shares was
completed on July 1, 2009.
18

Properties
I-Remit and its subsidiaries do not own any real estate properties. I-Remit is leasing its headquarters located
at the 25 th , 26 th and 27 th floors of the Discovery Centre, a condominium office and residential building located
at 25 ADB Avenue, Ortigas Center, Pasig City from Oakridge Properties, Inc. In addition, certain departments
of the Company are holding office at the 8 th floor of the Wynsum Corporate Plaza, a condominium office
building located at 22 F. Ortigas Jr. Road (formerly Emerald Avenue), Ortigas Center, Pasig City.
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, 2007 Jan. 31,
Discovery Centre Center, Pasig City
2010
119,610.32 2 Feb. 1, 2010 Jan. 31,
2012
Unit 2603, 26/F 25 ADB Avenue, Ortigas 199.70 131,802.00 2 Dec. 1, 2009 Nov. 30,
Discovery Centre Center, Pasig City
2011
Unit 2604 & 2605, 25 ADB Avenue, Ortigas 551.80 377,238.07 2 Dec. 1, 2009 Nov. 30,
26/F Discovery
Centre
Center, Pasig City
2011
Unit 2703, 27/F 25 ADB Avenue, Ortigas 199.70 106,320.28 2 Feb. 1, 2009 Jan. 31,
Discovery Centre Center, Pasig City
2011
121,817.00 2 Feb. 1, 2011 Jan. 31,
2013
8/F Wynsum
22 F. Ortigas Jr. Road, 287.00 115,762.50 2 Sep. 1, 2008 Aug. 31,
Corporate Plaza Ortigas Center, Pasig City
2010
175,350.00 2 Sep. 1, 2010 Aug. 31,
2012
Five (5) parking 22 F. Ortigas Jr. Road,
--- 20,258.45 2 Sep. 1, 2008 Aug. 31,
spaces, Wynsum
Corporate Plaza
Ortigas Center, Pasig City
2010
17,500.00 2 Sep. 1, 2010 Aug. 31,
2012
The Company has no plans or intention to acquire real properties in the next twelve (12) months.
Legal Proceedings
The Company and its subsidiaries, affiliates 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.
Market for Issuer’s Common Equity and Related Stockholder Matters
The common shares of the Company were listed in the Philippine Stock Exchange (PSE) beginning October
17, 2007.
Quarter end stock price ranges for 2008, 2009 and 2010 are as follows:
Quarter Ending Date High Low Close
March 31, 2008 PHP 4.70 PHP 3.00 PHP 3.55
June 30, 2008 PHP 3.55 PHP 2.50 PHP 3.00
September 30, 2008 PHP 4.70 PHP 2.55 PHP 4.30
December 31, 2008 PHP 5.00 PHP 3.25 PHP 4.95
March 31, 2009 PHP 4.80 PHP 3.70 PHP 4.45
June 30, 2009 PHP 4.65 PHP 4.00 PHP 4.10
September 30, 2009 PHP 4.60 PHP 3.85 PHP 4.00
December 31, 2009 PHP 7.00 PHP 3.70 PHP 6.10
March 31, 2010 PHP 6.20 PHP 4.70 PHP 4.85
June 30, 2010 PHP 5.00 PHP 4.25 PHP 4.40
September 30, 2010 PHP 4.85 PHP 3.44 PHP 4.00
December 31, 2010 PHP 4.08 PHP 3.20 PHP 3.34
The stock prices at June 24, 2011 were: PHP 3.00 (High); PHP 3.00 (Low); PHP 3.00 (Close).
19

Holders
There were sixteen (16) shareholders of record as of May 31, 2011. Common shares outstanding amounted
to 553,088,000 as of May 31, 2011.
These sixteen (16) shareholders as of May 31, 2011, the number of common shares held and the percentage
of total shares outstanding held by each are as follows:
Name Citizenship Total Common Shares Percentage (%)
1 PCD Nominee Corporation – Filipino Filipino * 219,998,625 39.1166
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 1,410,700 0.2508
7 Asiatic Development Corporation Filipino 100,000 0.0178
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 Simon, Dwight David M. and/or Corrine Jewel R. Simon Filipino 2,000 0.0004
13 Olayres, Norberto F. and/or Olayres, Felisa J. Filipino 1,000 0.0002
14 Hapi Iloilo Corporation Filipino 1,000 0.0002
15 M. J. Soriano Trading, Inc. Filipino 1,000 0.0002
16 Gaw, Gilbert C. Filipino 100 0.0000
Total 562,417,000 100.0000
* The PCD shares include 62,581,775 shares lodged by JTKC Equities, Inc.; thus, the latter’s total shareholdings is 106,010,225 representing
18.8490% ownership.
Dividends
In 2008, the Company authorized the declaration of cash dividends amounting to PHP22,000,000 or
PHP0.0391 per share, payable to all of its shareholders-of-record as of May 15, 2008 and paid and distributed
to the shareholders on June 10, 2008.
In 2009, the Company authorized the declaration of cash dividends amounting to PHP26,000,000 or
PHP0.0471 per share, payable to all its shareholders-of-record as of April 7, 2009 and paid and distributed to
the shareholders on May 6, 2009.
On March 19, 2010, the Board of Directors of the Company declared cash dividends amounting to
PHP26,603,532, representing 20% of the Company’s consolidated net income for the period ended December
31, 2009 or PHP0.0481 per share, payable to all of its shareholders-of-record as of April 8, 2010 and paid and
distributed to the shareholders on May 5, 2010.
On June 17, 2011, the Board of Directors of the Company authorized the declaration of 55,308,800 common
shares stock dividend, with a par value of PHP1.00 per share or an aggregate par value of PHP
55,308,800.00, out of the unrestricted retained earnings of the Company as of December 31, 2010. The stock
dividend, which is equivalent to 10% of the issued and outstanding shares of the Company, will be taken from
the unissued capital stock of the Company, and will be submitted to the Securities and Exchange Commission
for approval. The stock dividend is payable to all of the Company’s stockholders of record as of August 15,
2011. Payment date will be on or before September 8, 2011. Pursuant to the provisions of the Corporation
Code, the said stock dividend declaration will be submitted for stockholders’ approval during their annual
meeting on July 29, 2011.
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 (2/3) of the Company’s total outstanding capital stock.
20

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 nor more than thirty (30)
days from the shareholders’ approval, provided however, that the set record date is not to be less than ten (10)
trading days from receipt of the PSE of the notice of the said record date. If no record date is set, under the
SEC 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 SEC.
With the listing of the Company’s shares in the PSE, the Company intends to maintain an annual dividend
payment ratio for its shares of up to 20% 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.
Other than statutory limitations, there are no restrictions that prevent the Company from paying dividends on
common equity.
Recent Sale of Unregistered or Exempt Securities Including Recent Issuance of Securities Constituting
an Exempt Transaction
Since the Company’s Listing Date on October 17, 2007, there has been no recent sale of unregistered or
exempt securities including recent issuances of securities constituting an exempt transaction.
Except as disclosed in the Management’s Discussion and Analysis of Financial Conditions and Results of
Operations, 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. Neither is the Company aware of any events that will trigger a direct or
contingent 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 disclosed in the Management’s Discussion and Analysis of Financial Conditions and Results of
Operations, 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, revenue or income from
continuing operations.
There are no significant elements of income or loss that did not arise from the Company’s continuing
operations. Likewise, 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 or any significant changes in the number
of employees in the next twelve (12) months.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
There have been no changes in or disagreements with accountants on accounting and financial disclosure.
DIRECTORS AND EXECUTIVE OFFICERS
Please refer to the discussion on “Directors, Executive Officers, Promoters and Control Persons” in the main
body of the Information Statement.
21

CORPORATE GOVERNANCE
The Company 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 defined the functions of the
Corporate Secretary and prescribes the roles of the Company’s external and internal auditors.
On February 18, 2011, the Board of Directors adopted the Company’s Revised Manual on Corporate
Governance in compliance with SEC Memorandum Circular No. 6, Series of 2009: Revised Code of
Corporate Governance.
In addition, the Company also has a Conduct, Discipline and Ethics (CODE) Manual that was first adopted on
May 1, 2004 and subsequently revised on July 7, 2004. This manual contains guidelines on matters involving
work performance; professionalism; behavior and dealings with employees, directors, customers, and
business partners; and handling of assets, records and information. This manual is in the process of being
revised to include standards on matters of good corporate governance such as insider trading and the
avoidance of conflict of interest situations.
Independent Directors
In accordance with SEC Memorandum Circular No. 16, Series of 2002, also known as the 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 Securities and Regulations Code (“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 July 23, 2010, 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 July 23, 2010.
Committees of the Board of Directors
In aid of good corporate governance, the Company’s Board created each of the following committees and
appointed members thereto from among themselves during the organizational meeting of the Board on July
23, 2010. Each member of their respective committees named below began holding office on July 23, 2010
and will serve until his successor shall have been duly qualified and elected.
22

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 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 for assisting the Board in its fiduciary responsibilities by
providing an independent and objective assurance to the Company’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.
The Company’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 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, Jr. and Harris E. D. Jacildo as Members.
Compensation and Remuneration Committee
The Compensation and Remuneration 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).
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 Nomination Committee is composed of three (3) members of the Board, including one (1)
independent director and one (1) non-voting member in the person of the Human Resources
Manager. The 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.
23

The Nomination Committee is composed of Messrs. Bansan C. Choa, Armin V. Demetillo,
Gregorio T. Yu (Independent Director), and Ms. Catherine M. Chan (Head, Human Capital
Management Department).
The Company’s Certificate of Compliance with the Manual (SEC Form MCG-2002) was submitted by the
Compliance Officer to the SEC and disclosed to the Philippine Stock Exchange on January 18, 2011. 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 2010.
The Company accomplished and submitted the 2010 Corporate Governance Guidelines for Listed Companies
Disclosure Template of The Philippine Stock Exchange, Inc. on January 26, 2011.
The Company’s Management’s Discussion and Analysis of Financial Conditions and Results of Operations are
attached as Annex “A”. The Company’s Financial Statements as of December 31, 2010 and 2009, and for the
years ended December 31, 2010, 2009 and 2008 are attached as Annexes “C” and “C-1”. The Company’s
SEC Form 17-Q for the first quarter of year 2011 is attached as Annex “D”.
UPON WRITTEN REQUEST OF ANY SHAREHOLDER OF RECORD ENTITLED TO NOTICE OF AND
VOTE AT THE MEETING, THE COMPANY SHALL FURNISH SAID SHAREHOLDER WITH A COPY OF
THE COMPANY’S ANNUAL REPORT ON SEC FORM 17-A WITHOUT CHARGE. ANY SUCH WRITTEN
REQUEST SHALL BE ADDRESSED TO:
NANCY JOAN M. JAVIER
CORPORATE SECRETARY, I-REMIT, INC.
2704 EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE
EXCHANGE ROAD, ORTIGAS CENTER
1605 PASIG CITY, METRO MANILA
PHILIPPINES
24

Plan of Operation
MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
Annex “A”
The Company’s strategy is focused on gaining a larger share of the inward remittances of overseas Filipino
workers (OFWs). As of April 2011, the Company has 6.9% share of the USD 6.21 billion remittances of OFWs
in the first four (4) months of the year. The Company aims to identify and tap a wider customer base in each
of the countries where it operates through focused marketing efforts and expansion of distribution reach and
capabilities by opening new offices, or engaging new agents and tie-ups.
The Company provides world-class remittance services at very competitive prices. It provides the widest
choices of remittance modes to its customers. Presently, it is strong in the bank-to-bank transactions that
credit remittances to any bank of choice in the Philippines. The Company utilizes various technological
platforms and establishes strategic partnerships with banks, making it possible for online and same day
crediting of accounts.
Recently, IRemit Global Remittance Limited, a wholly owned subsidiary of the company was granted authority
by the Financial Services Authority of the United Kingdom as an Authorized Payment Institution (API). An API
is a firm authorized to provide payment services including money remittance under the European Union
Payment Services Directive. As an API, IRemit Global Remittance Limited can exercise “passporting” rights
and is entitled to carry on its activities in other European Economic Area states by establishing branches or
providing cross-border services.
The nationwide coverage of the Company’s door-to-door service reaches more beneficiaries than other
remittance companies with delivery area spanning 17 regions in the country. The iNotify (remittance pick up) is
an alternative service method where beneficiaries in the Philippines can claim remittances from any of the
Company’s more than 5,900 designated pay-out centers nationwide within 24 hours after receipt of the
remittance from the its foreign offices. The Company also opened new remittance corridors by introducing
iNotify Foreign, a method of remittance from one country to another. Both Filipinos and non-Filipinos abroad
can remit money and the designated beneficiaries can just pick-up the proceeds from the Company’s offices in
these countries.
The Company also revolutionized the use of the debit card in the remittance industry. The iRemit Visa Debit
Card is a personalized debit and ATM card-in-one. It is the fastest service mode of the Company which
features real-time crediting of remittances from abroad. It enables both senders and beneficiaries to easily
withdraw cash from more than 10,000 Bancnet, Megalink and Expressnet ATMs in the Philippines. It also
provides access to Visa ATMs worldwide and can handle mobile and internet banking transactions. As a debit
card, it is also accepted in tens of millions of Visa-affiliated merchant establishments, and 1.8 million ATMs in
more than 200 countries worldwide. The Company continues to promote this alternative delivery channel to its
customers.
Furthermore, the Company continues to diversify its offerings to include socially-relevant services such as
collecting premium and contribution payments of OFWs to our country’s programs such as Pag-IBIG, the SSS,
Philippine Retirement Authority and PhilHealth. The Company is also accepting home mortgage amortization
payments, insurance premiums, donations to CBN Asia, appliance purchase payments, airline booking
payments, and orders from Jollibee, the largest fast food chain in the Philippines.
The company’s wide network coverage of OFW-host countries and several strategic partnerships and tie-ups
with various local and international banks, pawnshops, couriers and mobile phone companies make it the
largest independent local remittance company.
Aside from wide choices of remittance methods, the Company continuously upgrades the level and quality of
customer service. It has its own Manila-based 24/7 customer service support center. Customers now have
easy, convenient access to customer services through dedicated team of customer support officers who
manage and support its foreign offices, associates and clients. This team of highly trained professionals also
handles status inquiries and complaints. The initiative greatly enhances customer convenience and the
Company’s responsiveness to the remitters’ and beneficiaries’ welfare.
The Company also capitalizes on its technology platform to support business growth and provide more
innovative services around the globe. It established host-to-host connectivity with strategic partner banks to
greatly improve transaction speed. It utilizes the latest in advanced banking technology to ensure fast, reliable
and secure delivery of remittances. The company defines and maintains information security policies that
follow leading industry standards through the use of firewalls, secure socket layer (SSL) encryption, anti-virus
1

and anti-spam measures, and user-defined access controls. Its major application systems also have multiple
security features to protect the integrity of application and data.
Apart from the security of its information systems and resources, the Company also aims to comply with all
anti-money laundering regulations of the Bangko Sentral ng Pilipinas and of the monetary authorities of all
host countries it operates in. One of the significant aspects of the company’s compliance program with respect
to anti-money laundering/counter-terrorism financing is the proper establishment of the true identity of its
customers through the proper Customer Due Diligence (CDD) procedures. All of the Company’s foreign offices
have duly appointed compliance officers who are responsible for implementing all aspects of anti-money
laundering (AML) and counter-terrorism financing (CTF) regulations and guidelines in complying with the
specific AML and CTF regulations. These policies and regulations essentially adopt the recommendations of
the Financial Action Task Force (FATF), the inter-governmental body organized for the development and
promotion of national and international policies to combat money laundering and terrorist financing.
The Company also aims to develop and increase customer awareness of its brand through advertising and
promotional activities and by actively participating in the activities of Filipino communities in the countries
where it operates in.
Full Years
2010 compared to 2009
I-Remit realized a consolidated net income of PHP 65.9 million in 2010, a decrease of PHP 67.2 million or
50.5% over the consolidated net income of PHP 133.1 million in 2009.
Revenues decreased by 1.1% or PHP 8.7 million from PHP 778.7 million in 2009 to PHP 769.9 million in 2010
mainly due to the decline in realized foreign exchange gains. Foreign exchange gains dropped by 8.6% or
PHP24.9 million from PHP287.7 million in 2009 to PHP262.8 million in 2010. The value of transactions grew
by 9.9% or USD109.5 million from USD1.103 billion in 2009 to USD1.213 billion in 2010. The Company’s
revenue from delivery fees grew by only 3.2% or PHP15.9 million from PHP490.4 million in 2009 to PHP506.2
million in 2010 largely because of the appreciation of the Philippine peso against the U.S. dollar. The
Company’s fees are largely settled in U.S. dollars. The average peso-dollar exchange rate was PHP47.63 in
2009 against PHP45.08 in 2010, a gain of 5.3% or PHP2.55 per dollar. In December 2010, the average pesodollar
exchange rate was PHP43.95 per dollar. The number of transactions processed by the Company grew
by only 2% from 2.683 million in 2009 to 2.737 million in 2010.
Total operating expenses was higher by PHP58.3 million (14.1%) from PHP412.4 million in 2009 to PHP470.7
million in 2010 mainly on account of higher rental, marketing, and professional fee expenses. Rental
expenses increased by 28.1% from PHP39.3 million in 2009 to PHP50.4 million in 2010. Marketing expenses
increased by 32.0% from PHP33.0 million in 2009 to PHP43.5 million in 2010. Professional fees increased by
46.9% from PHP29.7 million in 2009 to PHP43.6 in 2010. The increase in these expense items are related
mainly to the Company’s expansion as it opened new offices in Canada and Italy.
Other income decreased by 62.8% or PHP54.3 million from PHP86.4 million in 2009 to PHP32.1 million in
2010 mainly due to the decline in net trading gains on debt securities (listed overseas) held for trading and
lower other income consisting of interest income, rebates, and unrealized foreign exchange gain. Net trading
gains declined by PHP30.3 million or 92.4% from PHP32.8 million in 2009 to PHP2.5 million in 2010.
The total assets of the Company decreased by PHP131.9 million or 5.3% to PHP2.356 billion as of December
31, 2010 against PHP2.488 billion as of December 31, 2009. Cash and cash equivalents decreased by
PHP79.0 million or 8.2% from PHP962.8 million in 2009 to PHP883.8 million in 2010. Financial assets at fair
value through profit or loss amounted to PHP102.9 million at end-2010 against PHP65.8 million at end-2009,
increasing by PHP37.1 million or 56.4%. These assets consist of investments in debt securities (listed
overseas) held for trading. Receivables declined by PHP80.2 million or 7.0% from PHP1.139 billion in 2009 to
PHP1.059 billion in 2010. The Company’s non-current assets declined by PHP300,928 or 0.2% from
PHP190,039,196 at end-2009 to PHP190,340,124 at end-2010.
Total liabilities declined by PHP151.4 million or 12.2% from PHP1.235 billion at end-2009 to PHP1.084 billion
in 2010 mainly due to a lower level of current liabilities. Current liabilities decreased by PHP148.6 million or
12.1% from PHP1.232 billion in 2009 to PHP 1.083 billion in 2010.
The Company’s stockholders’ equity as of December 31, 2010 stood at PHP 1.271 billion, higher by PHP19.5
million or 1.6% against the end-2009 level of PHP 1.252 billion.
2

Below are the comparative key performance indicators of the Company (Parent Company and subsidiaries):
Performance Indicator Definition December 31, 2010 December 31, 2009
Return on Equity (ROE)
Net income* over average stockholders’ equity during the
period
5% 11%
Return on Assets (ROA) Net income* over average total assets during the period 3% 6%
Earnings per Share (EPS) Net income* over average number of outstanding shares PHP 0.12 PHP 0.24
Sales Growth
Total transaction value in USD in present period over the
previous year
10% 2%
Gross Income Revenue less total cost of services (PHP millions) 562.0 547.7
* Net Income attributable to equity holders of the Parent Company and Minority Interest. EPS computed using Net Income
attributable to equity holders of the Parent Company for the year ended December 31, 2010 and for the year ended
December 31, 2009 are PHP 0.14 and PHP 0.25, respectively.
Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition December 31, 2010 December 31, 2009
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
3% 33%
Return on Assets (ROA) Net income over average total assets during the period 1% 10%
Earnings per Share (EPS) Net income over average number of outstanding shares 1.80 18.18
Sales Growth
Total transaction value in USD in present period over the
previous year
3% 11%
Gross Income Revenue less total cost of services (PHP millions) 97.5 99.7
Lucky Star Management Limited
Performance Indicator Definition December 31, 2010 December 31, 2009
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
89% 47%
Return on Assets (ROA) Net income over average total assets during the period 26% 14%
Earnings per Share (EPS) Net income over average number of outstanding shares 30.53 11.18
Sales Growth
Total transaction value in USD in present period over the
previous year
8% 20%
Gross Income Revenue less total cost of services (PHP millions) 25.6 21.4
IRemit Global Remittance Limited
Performance Indicator Definition December 31, 2010 December 31, 2009
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
39% 60%
Return on Assets (ROA) Net income over average total assets during the period 6% 4%
Earnings per Share (EPS) Net income over average number of outstanding shares 10,191.13 10,021.79
Sales Growth
Total transaction value in USD in present period over the
previous year
1% -17%
Gross Income Revenue less total cost of services (PHP millions) 43.8 46.9
I-Remit Australia Pty Ltd
Performance Indicator Definition December 31, 2010 December 31, 2009
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
1% 176%
Return on Assets (ROA) Net income over average total assets during the period 0.2% 24%
Earnings per Share (EPS) Net income over average number of outstanding shares 14,435.50 1,859,480.93
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 0.3 0.2
Worldwide Exchange Pty Ltd
Performance Indicator Definition December 31, 2010 December 31, 2009
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
5% 41%
Return on Assets (ROA) Net income over average total assets during the period 1% 11%
Earnings per Share (EPS) Net income over average number of outstanding shares 2.00 29.75
Sales Growth
Total transaction value in USD in present period over the
previous year
20% -5%
Gross Income Revenue less total cost of services (PHP millions) 29.2 32.6
3

I-Remit New Zealand Limited
Performance Indicator Definition December 31, 2010 December 31, 2009
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
20% 81%
Return on Assets (ROA) Net income over average total assets during the period -9% -25%
Earnings per Share (EPS) Net income over average number of outstanding shares -1,129.10 -2,654.42
Sales Growth
Total transaction value in USD in present period over the
previous year
38% 595%
Gross Income Revenue less total cost of services (PHP millions) 8.8 7.6
IREMIT EUROPE Remittance Consulting AG
Performance Indicator Definition December 31, 2010 December 31, 2009
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
-193% -189%
Return on Assets (ROA) Net income over average total assets during the period -74% -31%
Earnings per Share (EPS) Net income over average number of outstanding shares -666.31 -243.17
Sales Growth
Total transaction value in USD in present period over the
previous year
94% 43%
Gross Income Revenue less total cost of services (PHP millions) 11.7 9.1
Power Star Asia Group Limited
Performance Indicator Definition December 31, 2010 December 31, 2009
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
38% 89%
Return on Assets (ROA) Net income over average total assets during the period 36% 78%
Earnings per Share (EPS) Net income over average number of outstanding shares 63.27 86.35
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 62.4 55.5
2009 compared to 2008
I-Remit realized a consolidated net income of PHP 133.1 million in 2009, an increase of PHP 3.2 million or
2.4% over the consolidated net income of PHP 129.98 million in 2008.
Revenues increased by PHP 16.6 million (2.2%) to PHP 778.6 million in 2009 from PHP 762.0 million in 2008
mainly due to the 11.9% increase in transaction count (from 2,397,180 in 2008 to 2,683,639 in 2009) and a
1.9% increase in USD remittance volume (from USD 1,083.6 million in 2008 to USD 1,104.0 million in 2009).
Of the total transaction count in 2009, the percentage contributions per region are as follows: Asia-Pacific,
43%; Middle East, 28%; North America, 16%; and Europe, 9%. In terms of USD remittance volume, the
regional contributions are as follows: Asia-Pacific, 33%; Europe, 12%, Middle East, 20%, and North America,
17%. The Company’s market share in 2009 was 6.4% from 6.6% in 2008 based on the BSP-reported figure of
total inward remittances to the Philippines of USD 17.3 billion. Accordingly, the Company’s gross income
decreased by PHP 17.7 million or -3.1% from PHP 565.4 million in 2008 to 547.7 million in 2009.
Total operating expenses were 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 consisted 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.
4

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 due to 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 interestearning
loans by PHP 350.0 million or 60.3% from PHP 580.0 million in 2008 to PHP 930.0 million in 2009.
The Company’s stockholders’ equity as of December 31, 2009 stood at PHP 1.252 billion, higher by PHP
136.4 million or 12.2% against the year-end 2008 level of PHP 1.116 billion.
Below are the comparative key performance indicators of the Company (Parent Company and subsidiaries):
Performance Indicator Definition December 31, 2009 December 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 period over the
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 PHP 0.25 and PHP 0.23, respectively.
Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition December 31, 2009 December 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 PHP 18.18 PHP 26.60
Sales Growth
Total transaction value in USD in present period over the
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 December 31, 2009 December 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 PHP 11.18 PHP 15.67
Sales Growth
Total transaction value in USD in present period over the
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 December 31, 2009 December 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 PHP 10,021.79 PHP 666.34
Sales Growth
Total transaction value in USD in present period over the
previous year
-17% -4%
Gross Income Revenue less total cost of services (PHP millions) 46.9 42.2
I-Remit Australia Pty Ltd
Performance Indicator Definition December 31, 2009 December 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 PHP 1,859,480.93 PHP 1,623,710.00
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 0.2 0.4
5

Worldwide Exchange Pty Ltd
Performance Indicator Definition December 31, 2009 December 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 PHP 29.75 PHP 106.93
Sales Growth
Total transaction value in USD in present period over the
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 December 31, 2009 December 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 (PHP 2,654.42) (PHP 1,721.28)
Sales Growth
Total transaction value in USD in present period over the
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 December 31, 2009 December 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 (PHP 243.17) (PHP 259.01)
Sales Growth
Total transaction value in USD in present period over the
previous year
43% -
Gross Income Revenue less total cost of services (PHP millions) 9.1 6.8
Power Star Asia Group Limited
Performance Indicator Definition December 31, 2009 December 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 PHP 86.35 PHP 49.87
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 55.5 59.8
2008 compared to 2007
The Company 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 were 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
6

2008 mainly because of a higher level of prepaid expenses and card inventory. Property and equipment
increased by PHP 11.8 million or 62% from PHP 19.1 million in 2007 to PHP 30.9 million in 2008 mainly due to
investments in office and communication equipment. Goodwill decreased by PHP 20.0 million from PHP
111.4 million in 2007 to PHP 91.5 million in 2008 due to exchange adjustment. Other noncurrent assets
increased by PHP 15.2 million or 68% from PHP 22.49 million in 2007 to PHP 37.7 million in 2008.
Total liabilities increased by PHP 533.6 million or 165% from PHP 323.9 million in 2007 to PHP 857.5 million in
2008 mainly higher level of current liabilities. Current liabilities increased by PHP 533.7 million or 168% from
PHP 318.4 million in 2007 to PHP 852.1 million in 2008 due to the increase in interest-earning loans by PHP
405.0 million or 231% from PHP 175 million in 2007 to PHP 580 million in 2008.
The Company’s stockholders’ equity as of December 31, 2008 stood at PHP 1.116 billion, higher by PHP 38.9
million or 4% against the year-end 2007 level of PHP 1.077 billion.
Below are the comparative key performance indicators of the Company (Parent Company and subsidiaries):
Performance Indicator Definition December 31, 2008 December 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 period over the
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 PHP 0.23 and PHP 0.53, respectively.
Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition December 31, 2008 December 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 PHP 26.60 PHP 21.74
Sales Growth
Total transaction value in USD in present period over the
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 December 31, 2008 December 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 PHP 15.67 PHP 11.78
Sales Growth
Total transaction value in USD in present period over the
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 December 31, 2008 December 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 PHP 666.34 PHP 4,193.47
Sales Growth
Total transaction value in USD in present period over the
previous year
-4% -
Gross Income Revenue less total cost of services (PHP millions) 42.2 43.6
7

I-Remit Australia Pty Ltd
Performance Indicator Definition December 31, 2008 December 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 PHP 1,623,710.00 PHP 1,167,012.29
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 0.4 0.3
Worldwide Exchange Pty Ltd
Performance Indicator Definition December 31, 2008 December 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 PHP 106.93 PHP 77.14
Sales Growth
Total transaction value in USD in present period over the
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 December 31, 2008 December 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 (PHP 1,721.28) -
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 1.1 -
IREMIT EUROPE Remittance Consulting AG
Performance Indicator Definition December 31, 2008 December 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 (PHP 259.01) -
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 6.8 -
Power Star Asia Group Limited
Performance Indicator Definition December 31, 2008 December 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 PHP 49.87 -
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 59.8 -
Interim Period
March 31, 2011 vs. December 31, 2010
The total assets of the Company increased by PHP 181.7 million or 7.7% to PHP 2.537 billion as of March 31,
2011 against PHP 2.356 billion as of December 31, 2010. Cash and cash equivalents increased by PHP 77.6
million or 8.8% from PHP 883.8 million as of December 31, 2010 to PHP 961.4 million as of March 31, 2011.
Financial assets at FVPL, which consist of investments in private debt securities (listed overseas) held for
trading, increased by PHP 8.1 million or 7.9% from PHP 102.9 million as of March 31, 2010 to PHP 111.0
million as of March 31, 2011. Receivables increased by PHP 96.4 million or 8.3% from PHP 1.155 billion as of
December 31, 2010 to PHP 1.252 billion as of March 31, 2011. Other current assets decreased by PHP 5.6
million or -23.9% from PHP 23.5 million as of December 31, 2010 to PHP 17.9 million as of March 31, 2011.
Investments in associates increased by PHP 0.7 million or 3.2% from PHP 20.9 million as of December 31,
2010 to PHP 21.6 million as of March 31, 2011. Property and equipment-net increased by PHP 1.1 million or
4.1% from PHP 27.0 million as of December 31, 2010 to PHP 28.1 million as of March 31, 2011. Goodwill
increased by PHP 1.4 million or 1.5% from PHP 93.1 million as of December 31, 2010 to PHP 94.5 million as
8

of March 31, 2011 due to foreign exchange adjustment. Deferred tax asset increased by PHP 1.0 million or
24.4% from PHP 4.2 million as of December 31, 2010 to PHP 5.2 million as of March 31, 2011. Software
Costs–net increased by PHP 0.5 million or 24.9% from PHP 2.1 million as of December 31, 2010 to PHP 2.6
million as of March 31, 2011. Other noncurrent assets increased by PHP 0.5 million or 1.1% from PHP 42.6
million as of December 31, 2010 to PHP 43.1 million as of March 31, 2011.
Total liabilities increased by PHP 166.7 million or 15.4% from PHP 1.084 billion as of December 31, 2010 to
PHP 1.250 billion as of March 31, 2011. Current liabilities increased by PHP 166.7 million or 15.4% from PHP
1.083 billion as of December 31, 2010 to PHP 1.250 billion as of March 31, 2011 mainly due to the increase in
payables by PHP 333.7 million or 167.2% from PHP 199.5 million as of December 31, 2010 to PHP 533.2
million as of March 31, 2011. Interest-bearing loans decreased by PHP 176.0 million or -20.1% from PHP
877.0 million as of December 31, 2010 to PHP 701.0 million as of March 31, 2011. Interest-bearing loans
consist of unsecured, short-term peso-denominated loans from various local financial institutions with interest
rates ranging from 5.0% to 6.0% per annum in First Quarter 2011 and 5.5% to 6.0% in 2010.
Accounts payable and other liabilities increased by PHP 342.7 million or 166.0% to PHP 549.1 million as of
March 31, 2011 compared with PHP 206.4 million as of December 31, 2010. Comprising accounts payable
and other liabilities are payables to beneficiaries of PHP 123.3 million, payables to agents, couriers and
trading clients of PHP 347.7 million, payable to suppliers of PHP 0.6 million, accrued expenses of PHP 16.6
million, withholding tax payable of PHP 2.4 million, advances from related parties of PHP 40.6 million, income
tax payable of PHP 16.0 million, and non-trade payables of PHP 1.9 million. Long-term debt amounting to
PHP 0.8 million as of March 31, 2011 represents retirement liability.
The Company’s stockholders’ equity as of March 31, 2011 stood at PHP 1.286 billion, higher by PHP 15.0
million or 1.2% against the year-end 2010 level of PHP 1.271 billion due to higher net income.
On March 25, 2011, the Company’s Board of Directors authorized the acquisition of additional equity in
Worldwide Exchange Pty Ltd (“WEPL”) equivalent to thirty-five percent (35%) of WEPL’s outstanding capital
stock for a total consideration of AUS$ 274,345.57. On March 31, 2011, the sale and purchase transaction
was completed bringing the shareholdings of the Company in WEPL to 70% direct voting interest and 30%
indirect voting interest through the Company’s wholly-owned subsidiary: I-Remit Australia Pty Ltd. WEPL is
engaged in servicing the remittance needs of overseas Filipino workers in Australia through its two (2)
branches located in Blacktown, New South Wales and Perth, Western Australia.
On April 15, 2011, the Bangko Sentral ng Pilipinas reported that remittances from overseas Filipinos reached
USD1.5 billion in February 2011, posting a year-on-year increment of 6.2%. As a result, total remittances for
the first two (2) months of the year totaled USD3.0 billion, representing a growth of 6.9%. Remittances from
sea-based and land-based workers for the two-month period registered increases of 12.7% and 5.5%,
respectively.
Remittance flows into the country continued to draw strength from steady demand for Filipino manpower
abroad. Latest reports by the Philippine Overseas Employment Administration (POEA) indicated that 43,360
job orders for service, production, and professional, technical and related workers were processed for the
period January 1 – March 31, 2011 in response to the manpower requirements in Saudi Arabia, United Arab
Emirates (UAE), Qatar, Kuwait, and Taiwan.
Data from the POEA also showed that the total number of deployed overseas workers for the period January-
November 2010 grew by 2.7% to 1,363,083 from 1,326,619 in the same period a year ago. Of the total
deployed overseas workers, more than three-fourths were land-based, more than 70% of which were rehired
workers. The leading destinations of the land-based workers (new hires and rehires) were Saudi Arabia, UAE,
Hong Kong, Qatar and Singapore.
On March 12, 2011, the Saudi Arabia Ministry of Foreign Affairs announced that it would stop the processing
of employment contracts for Filipino household service workers until further notice. According to Philippine
labor officials, the ban is connected to the new Migrant Workers and Overseas Filipinos Act which requires
prior to deployment a Department of Foreign Affairs (DFA) certification that the rights of domestic helpers
would be adequately protected. As of November 2010, there were 80,656 Filipino household service workers
with an estimated 9,000 Filipinos deployed in Saudi Arabia.
Also, in March 2011, new Filipino workers flew to Taiwan after its Ministry of Foreign Affairs lifted deployment
restrictions. Taiwan imposed restrictions on visa applications and work permits after the deportation to China
of 14 Taiwanese accused of fraudulent activities.
9

Recently, the BSP announced that it expects remittances from oversees Filipino workers (OFWs) growing by
7% to a record level of USD20.1 billion this year from USD18.76 billion last year. This was lower than the
earlier original growth target of eight percent to about USD20.2 billion this year. The BSP stated that
remittances in 2011 are expected to remain resilient amid possible downside risks such as the turmoil in the
MENA region and natural disasters in Japan.
Below are the comparative key performance indicators of the Company and its subsidiaries:
Mar. 31, 2011 Dec. 31, 2010
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income* over average stockholders’ equity during the
period
2% 5%
Return on Assets (ROA) Net income* over average total assets during the period 1% 3%
Earnings per Share (EPS) Net income* over average number of outstanding shares PHP 0.05 PHP 0.12
Sales Growth
Total transaction value in USD in present period over the
previous year
9% 10%
Gross Income Revenue less total cost of services (PHP millions) 165.5 562.0
* 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 period ended March 31, 2011 and for the year ended December
31, 2010 are PHP 0.06 and PHP 0.14, respectively.
Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Mar. 31, 2011 Dec. 31, 2010
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
5% 3%
Return on Assets (ROA) Net income over average total assets during the period 2% 1%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 3.12 PHP 1.80
Sales Growth
Total transaction value in USD in present period over the
previous year
7% 3%
Gross Income Revenue less total cost of services (PHP millions) 23.7 97.5
Lucky Star Management Limited
Mar. 31, 2011 Dec. 31, 2010
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
19% 89%
Return on Assets (ROA) Net income over average total assets during the period 9% 26%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 10.39 PHP 30.53
Sales Growth
Total transaction value in USD in present period over the
previous year
-29% 8%
Gross Income Revenue less total cost of services (PHP millions) 6.7 25.6
IRemit Global Remittance Limited
Mar. 31, 2011 Dec. 31, 2010
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
5% 39%
Return on Assets (ROA) Net income over average total assets during the period 1% 6%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 1,650.29 PHP 10,191.13
Sales Growth
Total transaction value in USD in present period over the
previous year
15% 1%
Gross Income Revenue less total cost of services (PHP millions) 10.5 43.8
I-Remit Australia Pty Ltd
Mar. 31, 2011 Dec. 31, 2010
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
0.1% 1%
Return on Assets (ROA) Net income over average total assets during the period 0.1% 0.2%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 2,433.00 PHP 14,435.50
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 0.1 0.3
10

Worldwide Exchange Pty Ltd
Mar. 31, 2011 Dec. 31, 2010
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
-40% 5%
Return on Assets (ROA) Net income over average total assets during the period -5% 1%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 15.52) PHP 2.00
Sales Growth
Total transaction value in USD in present period over the
previous year
21% 20%
Gross Income Revenue less total cost of services (PHP millions) 7.5 29.2
I-Remit New Zealand Limited
Mar. 31, 2011 Dec. 31, 2010
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
11% 20%
Return on Assets (ROA) Net income over average total assets during the period -6% -9%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 719.31) (PHP 1,129.10)
Sales Growth
Total transaction value in USD in present period over the
previous year
19% 38%
Gross Income Revenue less total cost of services (PHP millions) 1.4 8.8
IREMIT EUROPE Remittance Consulting AG
Mar. 31, 2011 Dec. 31, 2010
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
149% -193%
Return on Assets (ROA) Net income over average total assets during the period -22% -74%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 180.05) (PHP 666.31)
Sales Growth
Total transaction value in USD in present period over the
previous year
19% 94%
Gross Income Revenue less total cost of services (PHP millions) 8.3 11.7
Power Star Asia Group Limited
Mar. 31, 2011 Dec. 31, 2010
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
11% 38%
Return on Assets (ROA) Net income over average total assets during the period 11% 36%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 22.72 PHP 63.27
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 21.7 62.4
March 31, 2011 vs. March 31, 2010
I-Remit realized a consolidated net income of PHP 28.4 million in First Quarter 2011, an increase of PHP 3.9
million or 15.8% over the consolidated net income of PHP 24.5 million in First Quarter 2010.
Revenues increased by PHP 26.3 million or 14.0% to PHP 214.3 million in First Quarter 2011 from PHP 188.0
million in First Quarter 2010 mainly due to the 4.2% increase in transaction count (from 669,686 in First
Quarter 2010 to 698,007 in First Quarter 2011) and a 9.5% increase in USD remittance volume (from USD
292.6 million in First Quarter 2010 to USD 320.4 million in First Quarter 2011). Of the total transaction count in
First Quarter 2011, the percentage contributions per region are as follows: Asia-Pacific, 43%; Middle East,
27%; North America, 14%; and Europe, 13%. In terms of USD remittance volume, the regional contributions
are as follows: Asia-Pacific, 33%; Middle East, 18%, North America, 15%, and Europe, 13%. Accordingly, the
Company’s gross income increased by PHP 29.4 million or 21.6% from PHP 136.1 million in First Quarter
2010 to PHP 165.5 million in First Quarter 2011.
Total operating expenses was higher by PHP 21.5 million or 20.1% from PHP 106.9 million in First Quarter
2010 to PHP 128.4 million in First Quarter 2011 mainly on account of higher salaries, wages and employee
benefits, professional fees, marketing and rental expenses.
The total assets of the Company increased by PHP 486.0 million or 23.7% to PHP 2.537 billion as of March
31, 2011 against PHP 2.051 billion as of March 31, 2010. Cash and cash equivalents increased by PHP 220.6
million or 29.8% from PHP 740.8 million as of March 31, 2010 to PHP 961.4 million as of March 31, 2011.
Financial assets at FVPL, which consist of investments in private debt securities (listed overseas) held for
11

trading, stood at PHP 111.0 million as of March 31, 2011, an increase of PHP 50.6 million or 83.7% against
PHP 60.4 million as of March 31, 2010. Receivable increased by PHP 227.2 million or 22.2% from PHP 1.025
billion as of March 31, 2010 to PHP 1.252 billion as of March 31, 2011. Other current assets decreased by
PHP 16.0 million or -47.3% from PHP 33.9 million as of March 31, 2010 to PHP 17.9 million as of March 31,
2011. Investments in associates increased by PHP 2.0 million or 10.2% from PHP 19.6 million as of March
31, 2010 to PHP 21.6 million as of March 31, 2011. Property and equipment-net decreased by PHP 1.1
million or -3.9% from PHP 29.2 million as of March 31, 2010 to PHP 28.1 million as of March 31, 2011.
Goodwill decreased by PHP 3.1 million or -3.2% from PHP 97.6 million as of March 31, 2010 to PHP 94.5
million as of March 31, 2011 due to foreign exchange adjustment. Deferred tax asset increased by PHP 1.6
million or 43.2% from PHP 3.6 million as of March 31, 2010 to PHP 5.2 million as of March 31, 2011. Software
Costs–net increased by PHP 0.2 million or 8.8% from PHP 2.4 million as of March 31, 2010 to PHP 2.6 million
as of March 31, 2011. Other noncurrent assets increased by PHP 4.0 million or 10.3% from PHP 39.1 million
as of March 31, 2010 to PHP 43.1 million as of March 31, 2011.
Total liabilities increased by PHP 468.2 million or 59.8% from PHP 782.8 million as of March 31, 2010 to PHP
1.250 billion as of March 31, 2011. Current liabilities increased by PHP 471.0 million or 60.5% from PHP
779.1 million as of March 31, 2010 to PHP 1.250 billion as of March 31, 2011 mainly due to the increase in
interest-bearing loans by PHP 151.0 million or 27.4% from PHP 550.0 million as of March 31, 2010 to PHP
701.0 million as of March 31, 2011. Interest-bearing loans consist of unsecured, short-term peso-denominated
loans from various local financial institutions with interest rates ranging from 5.0% to 6.0% per annum in First
Quarter 2011 and 6.0% to 8.0% in First Quarter 2010.
Accounts payable and other liabilities increased by PHP 320.0 million or 139.7% to PHP 549.1 million as of
March 31, 2011 compared with PHP 229.1 million as of March 31, 2010. Comprising accounts payable and
other liabilities are payables to beneficiaries of PHP 123.3 million, payables to agents, couriers and trading
clients of PHP 347.7 million, payable to suppliers of PHP 0.6 million, accrued expenses of PHP 16.6 million,
withholding tax payable of PHP 2.4 million, advances from related parties of PHP 40.6 million, income tax
payable of PHP 16.0 million, and non-trade payables of PHP 1.9 million. Long-term debt amounting to PHP
0.8 million as of March 31, 2011 represents retirement liability.
The Company’s stockholders’ equity as of March 31, 2011 stood at PHP 1.286 billion, higher by PHP 17.8
million or 1.4% against the March 31, 2010 level of PHP 1.269 billion due to higher net income.
On March 25, 2011, the Company’s Board of Directors authorized the acquisition of additional equity in
Worldwide Exchange Pty Ltd (“WEPL”) equivalent to thirty-five percent (35%) of WEPL’s outstanding capital
stock for a total consideration of AUS$ 274,345.57. On March 31, 2011, the sale and purchase transaction
was completed bringing the shareholdings of the Company in WEPL to 70% direct voting interest and 30%
indirect voting interest through the Company’s wholly-owned subsidiary: I-Remit Australia Pty Ltd. WEPL is
engaged in servicing the remittance needs of overseas Filipino workers in Australia through its two (2)
branches located in Blacktown, New South Wales and Perth, Western Australia.
On April 15, 2011, the Bangko Sentral ng Pilipinas reported that remittances from overseas Filipinos reached
USD1.5 billion in February 2011, posting a year-on-year increment of 6.2%. As a result, total remittances for
the first two (2) months of the year totaled USD3.0 billion, representing a growth of 6.9%. Remittances from
sea-based and land-based workers for the two-month period registered increases of 12.7% and 5.5%,
respectively.
Remittance flows into the country continued to draw strength from steady demand for Filipino manpower
abroad. Latest reports by the Philippine Overseas Employment Administration (POEA) indicated that 43,360
job orders for service, production, and professional, technical and related workers were processed for the
period January 1 – March 31, 2011 in response to the manpower requirements in Saudi Arabia, United Arab
Emirates (UAE), Qatar, Kuwait, and Taiwan.
Data from the POEA also showed that the total number of deployed overseas workers for the period January-
November 2010 grew by 2.7% to 1,363,083 from 1,326,619 in the same period a year ago. Of the total
deployed overseas workers, more than three-fourths were land-based, more than 70% of which were rehired
workers. The leading destinations of the land-based workers (new hires and rehires) were Saudi Arabia, UAE,
Hong Kong, Qatar and Singapore.
On March 12, 2011, the Saudi Arabia Ministry of Foreign Affairs announced that it would stop the processing
of employment contracts for Filipino household service workers until further notice. According to Philippine
labor officials, the ban is connected to the new Migrant Workers and Overseas Filipinos Act which requires
prior to deployment a Department of Foreign Affairs (DFA) certification that the rights of domestic helpers
would be adequately protected. As of November 2010, there were 80,656 Filipino household service workers
with an estimated 9,000 Filipinos deployed in Saudi Arabia.
12

Also, in March 2011, new Filipino workers flew to Taiwan after its Ministry of Foreign Affairs lifted deployment
restrictions. Taiwan imposed restrictions on visa applications and work permits after the deportation to China
of 14 Taiwanese accused of fraudulent activities.
Recently, the BSP announced that it expects remittances from oversees Filipino workers (OFWs) growing by
7% to a record level of USD20.1 billion this year from USD18.76 billion last year. This was lower than the
earlier original growth target of eight percent to about USD20.2 billion this year. The BSP stated that
remittances in 2011 are expected to remain resilient amid possible downside risks such as the turmoil in the
MENA region and natural disasters in Japan.
Below are the comparative key performance indicators of the Company and its subsidiaries:
Mar. 31, 2011 Mar. 31, 2010
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income* over average stockholders’ equity during the
period
2% 2%
Return on Assets (ROA) Net income* over average total assets during the period 1% 1%
Earnings per Share (EPS) Net income* over average number of outstanding shares PHP 0.05 PHP 0.04
Sales Growth
Total transaction value in USD in present period over the
previous year
9% 17%
Gross Income Revenue less total cost of services (PHP millions) 165.5 136.1
* 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 periods ended March 31, 2011 and March 31, 2010 are PHP
0.06 and PHP 0.05, respectively.
Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Mar. 31, 2011 Mar. 31, 2010
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
5% 3%
Return on Assets (ROA) Net income over average total assets during the period 2% 1%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 3.12 PHP 1.87
Sales Growth
Total transaction value in USD in present period over the
previous year
7% 18%
Gross Income Revenue less total cost of services (PHP millions) 23.7 24.1
Lucky Star Management Limited
Mar. 31, 2011 Mar. 31, 2010
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
19% 16%
Return on Assets (ROA) Net income over average total assets during the period 9% 4%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 10.39 PHP 3.48
Sales Growth
Total transaction value in USD in present period over the
previous year
-29% 24%
Gross Income Revenue less total cost of services (PHP millions) 6.7 5.4
IRemit Global Remittance Limited
Mar. 31, 2011 Mar. 31, 2010
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
5% 9%
Return on Assets (ROA) Net income over average total assets during the period 1% 1%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 1,650.29 PHP 1,943.58
Sales Growth
Total transaction value in USD in present period over the
previous year
15% 5%
Gross Income Revenue less total cost of services (PHP millions) 10.5 10.5
13

I-Remit Australia Pty Ltd
Mar. 31, 2011 Mar. 31, 2010
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
0.1% 7%
Return on Assets (ROA) Net income over average total assets during the period 0.1% 1%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 2,433.00 PHP 137,411.11
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 0.1 0.1
Worldwide Exchange Pty Ltd
Mar. 31, 2011 Mar. 31, 2010
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
-40% 20%
Return on Assets (ROA) Net income over average total assets during the period -5% 3%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 15.52) PHP 9.00
Sales Growth
Total transaction value in USD in present period over the
previous year
21% 29%
Gross Income Revenue less total cost of services (PHP millions) 7.5 7.3
I-Remit New Zealand Limited
Mar. 31, 2011 Mar. 31, 2010
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
11% -10%
Return on Assets (ROA) Net income over average total assets during the period -6% 4%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 719.31) PHP 450.26
Sales Growth
Total transaction value in USD in present period over the
previous year
19% 155%
Gross Income Revenue less total cost of services (PHP millions) 1.4 2.9
IREMIT EUROPE Remittance Consulting AG
Mar. 31, 2011 Mar. 31, 2010
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
149% -10%
Return on Assets (ROA) Net income over average total assets during the period -22% -8%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 180.05) (PHP 65.13)
Sales Growth
Total transaction value in USD in present period over the
previous year
19% 22%
Gross Income Revenue less total cost of services (PHP millions) 8.3 1.7
Power Star Asia Group Limited
Mar. 31, 2011 Mar. 31, 2010
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
11% 11%
Return on Assets (ROA) Net income over average total assets during the period 11% 9%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 22.72 PHP 15.08
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 21.7 16.3
14

I-Remit, Inc. and Subsidiaries
Consolidated Financial Statements
December 31, 2010 and 2009
and for the Years Ended December 31, 2010, 2009 and 2008
and
Independent Auditors’ Report
SyCip Gorres Velayo & Co.

I-REMIT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Corporate Information
I-Remit, Inc. (the Parent Company) was incorporated in the Philippines and was registered with
the Securities and Exchange Commission (SEC) on March 5, 2001 and started commercial
operations on November 11, 2001.
The Parent Company, which is domiciled in the Philippines, has its registered office and principal
place of business at 26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City. The
Parent Company’s common shares were listed with the Philippine Stock Exchange on
October 17, 2007.
The Parent Company and its subsidiaries (collectively referred to as “the Group”), except Power
Star Asia Group Limited (PSAGL), are primarily engaged in the business of fund transfer and
remittance services of any form or kind of currencies or monies, either by electronic, telegraphic,
wire or any other mode of transfer; delivery of such funds or monies, both in the domestic and
international market, by providing either courier or freight forwarding services; and conduct
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.
The Parent Company’s subsidiaries and associates follow:
Subsidiaries:
International Remittance
Country of
Incorporation
Functional
Currency
Effective Percentage of Ownership
December 31
2010 2009 2008
(Canada) Ltd. (IRCL) Canada
Canadian
Dollar (CAD) 100.00 100.00 100.00
Lucky Star Management
Hong Kong
Limited (LSML) Hong Kong Dollar (HKD) 100.00 100.00 100.00
IRemit Global Remittance United Great Britain
Limited (IGRL)
Kingdom Pound (GBP) 100.00 100.00 100.00
I-Remit Australia Pty Ltd
Australian
(IAPL) Australia Dollar (AUD) 100.00 100.00 100.00
Worldwide Exchange Pty
Australian
Ltd (WEPL)*
IREMIT EUROPE
Remittance Consulting
Australia Dollar (AUD) 65.00 65.00 65.00
AG (IERCAG) Austria Euro (EUR) 74.90 74.90 74.90
I-Remit New Zealand
New Zealand
Limited (INZL) New Zealand Dollar (NZD) 100.00 100.00 100.00
PSAGL Hong Kong Hong Kong
Associates:
Dollar (HKD) 100.00 100.00 100.00
IRemit Singapore Pte Ltd
Singapore
(ISPL)
Dollar (SGD) 49.00 49.00 49.00
Hwa Kung Hong & Co.,
New Taiwan
Ltd.(HKHCL) Taiwan Dollar (NTD) 49.00 49.00 –
* Consists of direct voting interest of 35.00% and indirect voting interest through IAPL of 30.00%
The Parent Company is the ultimate parent company of the Group.
*SGVMC113951*

2. Summary of Significant Accounting Policies
- 2 -
Basis of Preparation
The accompanying consolidated financial statements of the Group have been prepared on a
historical cost basis except for financial assets at fair value through profit or loss (FVPL) that have
been measured at fair value. The financial statements are presented in Philippine peso, the Parent
Company’s functional currency, and all values are rounded to the nearest peso except when
otherwise indicated.
Each entity in the Group determines its own functional currency and items included in the
financial statements of each entity are measured using that functional currency. The respective
functional currencies of the subsidiaries and associates are presented in Note 1.
Statement of Compliance
The accompanying consolidated financial statements have been prepared in compliance with
Philippine Financial Reporting Standards (PFRS).
Basis of Consolidation
The consolidated financial statements of the Group are prepared for the same reporting year as the
Parent Company, using consistent accounting policies.
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.
All significant intra-group balances, transactions, income and expenses and profits and losses
resulting from intra-group transactions are eliminated in full.
Subsidiaries are consolidated from the date on which control is transferred to the Parent Company.
Control is achieved when the Parent Company has the power to govern the financial and operating
policies of an entity so as to obtain benefits from its activities. Consolidation of subsidiaries
ceases when control is transferred out of the Group.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated
statement of income from the date of acquisition up to the date of disposal, as appropriate.
When a change in ownership interest in a subsidiary occur which result in loss of control over the
subsidiary, the Parent Company:
• derecognizes the assets (including goodwill) and liabilities of the subsidiary;
• derecognizes the carrying amount of any non-controlling interest;
• derecognizes the related other comprehensive income recorded in equity and recycle the same
to profit or loss or retained earnings;
• recognizes the fair value of the consideration received;
• recognizes the fair value of any investment retained; and
• recognizes any surplus or deficit in profit or loss.
*SGVMC113951*

- 3 -
Business Combinations and Goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition
is measured as the aggregate of the consideration transferred, measured at acquisition date fair
value and the amount of any non-controlling interest in the acquiree. For each business
combination, the acquirer measures the non-controlling interest in the acquiree either at fair value
or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are
expensed and included in operating expenses.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for
appropriate classification and designation in accordance with the contractual terms, economic
circumstances and pertinent conditions as at the acquisition date. This includes the separation of
embedded derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s
previously held equity interest in the acquiree is remeasured to fair value at the acquisition date
through profit or loss.
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at
the acquisition date. Subsequent changes to the fair value of the contingent consideration which is
deemed to be an asset or liability will be recognized in accordance with Philippine Accounting
Standards (PAS) 39 either in profit or loss or as a change to other comprehensive income. If the
contingent consideration is classified as equity, it should not be remeasured until it is finally
settled within equity.
Goodwill is initially measured at cost being the excess of the aggregate of fair value of the
consideration transferred and the amount recognized for non-controlling interest over the net
identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair
value of the net assets of the subsidiary acquired, the difference is recognized in profit or loss.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For
the purpose of impairment testing, goodwill acquired in a business combination is, from the
acquisition date, allocated to each of the Group’s cash-generating units (CGU) that are expected to
benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are
assigned to those units.
Business combinations prior to January 1, 2010
In comparison to the above-mentioned requirements, the following differences apply:
Business combinations were accounted for using the purchase method. Transaction costs directly
attributable to the acquisition formed part of the acquisition costs. The non-controlling interest
(formerly known as minority interest) was measured at the proportionate share of the acquiree’s
identifiable net assets.
Business combinations achieved in stages were accounted for as separate steps. Any additional
acquired share of interest did not affect previously recognized goodwill.
When the Group acquired a business, embedded derivatives separated from the host contract by
the acquiree were not reassessed on acquisition unless the business combination resulted in a
change in the terms of the contract that significantly modified the cash flows that otherwise would
have been required under the contract.
*SGVMC113951*

- 4 -
Contingent consideration was recognized if, and only if, the Group had a present obligation, the
economic outflow was more likely than not and a reliable estimate was determinable. Subsequent
adjustments to the contingent consideration were recognized as part of goodwill.
Non-Controlling Interest
Non-controlling interest represents the portion of profit or loss and net assets not owned, directly
or indirectly, by the Parent Company.
Non-controlling interests are presented separately in the consolidated statement of income,
consolidated statement of comprehensive income, and within equity in the consolidated balance
sheet, separately from the Parent Company’s shareholders’ equity. Any losses applicable to the
non-controlling interests are allocated against the interests of the non-controlling interest even if
this results in the non-controlling interest having a deficit balance. Acquisitions of noncontrolling
interests that does not result in a loss of control are accounted for as equity transaction,
whereby the difference between the consideration and the fair value of the share of the net assets
acquired is recognized as an equity transaction and attributed to the owners of the Parent
Company.
Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous financial year except for
the adoption of the following new and amended PFRS, PAS and Philippine Interpretations which
became effective on January 1, 2010:
New Standards and Interpretations
• PFRS 3, Business Combinations (Revised)
• PAS 27, Consolidated and Separate Financial Statements (Amended)
• Philippine Interpretation International Financial Reporting Interpretation Committee
(IFRIC) 17, Distributions of Non-Cash Assets to Owners
Amendments to Standards
• PAS 39 Amendment - Eligible Hedged Items
• PFRS 2 Amendments - Group Cash-settled Share-based Payment Transactions
Improvement to PFRS 2008
• PFRS 5, Non-current Assets Held for Sale and Discontinued Operations
Improvements to PFRSs 2009
• PFRS 2, Share-based Payment
• PFRS 5, Non-current Assets Held for Sale and Discontinued Operations
• PFRS 8, Operating Segments
• PAS 1, Presentation of Financial Statements
• PAS 7, Statement of Cash Flows
• PAS 17, Leases
• PAS 34, Interim Financial Reporting
• PAS 36, Impairment of Assets
• PAS 38, Intangible Assets
• PAS 39, Financial Instruments: Recognition and Measurement
• Philippine Interpretation IFRIC 9, Reassessment of Embedded Derivatives
• Philippine Interpretation IFRIC 16, Hedge of a Net Investment in a Foreign Operation
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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:
PFRS 3, Business Combinations (Revised) and PAS 27 Consolidated and Separate Financial
Statements (Amended)
PFRS 3 (Revised) introduces significant changes in the accounting for business combinations
occurring after becoming effective. 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 introduced by PFRS 3 (Revised) and PAS 27 (Amended) affect acquisitions or loss
of control of subsidiaries and transactions with non-controlling interests after January 1, 2010.
The change in accounting policy was applied prospectively and had no material impact on
earnings per share.
Foreign Currency Translation
The consolidated financial statements are presented in Philippine peso, which is the Parent
Company’s functional currency. Each subsidiary in the Group determines its own functional
currency and items included in the financial statements of each entity are measured using that
functional currency.
Transactions and balances
Transactions 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 consolidated statement of
income.
Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rates as at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value was determined. Any goodwill arising on the acquisition of a foreign
operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on
the acquisition are treated as assets and liabilities of the foreign operation and translated at the
closing rate.
Foreign subsidiaries
As of the balance sheet date, the assets and liabilities of subsidiaries 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 equity under ‘Cumulative
translation adjustment’. Upon disposal of a foreign entity, the deferred cumulative amount
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previously recognized in other comprehensive income relating to the particular foreign operation
is recognized in the consolidated statement of income.
Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash, with original maturities of
three months or less from the dates of placement and that are subject to an insignificant risk of
changes in fair value.
Financial Instruments - Initial Recognition 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 consolidated 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/beneficiaries.
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, held-to-maturity (HTM)
investments and available-for-sale (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, 2010 and 2009, 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.
The Group evaluated its HFT investments to determine whether the intention to sell them in the
near term is still appropriate. When the Group is unable to trade these financial assets due to
inactive markets and management’s intention to sell them in the foreseeable future significantly
changes, the Group may elect to reclassify these financial assets in rare circumstances. The
reclassification to loans and receivables, AFS investment or HTM investment depends on the
nature of the asset. This evaluation does not affect any financial assets designated at FVPL using
the fair value option at designation.
HFT investments are recorded in the consolidated balance sheet at fair value. Changes in fair
value are recognized as ‘Net trading gains’ in the consolidated statement of income. Interest
earned is recognized as interest income included under ‘Other income’ in the consolidated
statement of income. Quoted market prices, when available, are used to determine the fair value
*SGVMC113951*

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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 method less any allowance for credit losses. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees and costs that
are an integral part of the effective interest rate (EIR). Gains and losses are recognized in the
consolidated statement of income when the receivables are derecognized or impaired, as well as
through the amortization process. Receivables are classified as current assets when the Group
expects to realize or collect the asset within twelve months from the balance sheet date. Otherwise,
these are classified as non-current assets.
Classified under this category are the Group’s ‘Cash and cash equivalents’, ‘Accounts receivable’,
‘Other receivables’ and refundable deposits included under ‘Other noncurrent assets’.
Other financial liabilities
Issued financial instruments or their components, which are not designated as at FVPL, are
classified as other financial liability, where the substance of the contractual arrangement results in
the Group having an obligation either to deliver cash or another financial asset to the holder, or to
satisfy the obligation other than by the exchange of a fixed amount of cash or another financial
asset for a fixed number of its own equity shares. These include liabilities arising from operations
or borrowings. The components of issued financial instruments that contain both liability and
equity elements are accounted for separately, with the equity component being assigned the
residual amount after deducting from the instrument as a whole the amount separately determined
as the fair value of the liability component on the date of issue.
After initial measurement, other financial liabilities are subsequently measured at amortized cost
using the effective interest method.
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.
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Day 1 difference
Where the transaction price in a non-active market is different from the fair value from other
observable current market transactions in the same instrument or based on a valuation technique
whose variables include only data from an observable market, the Group recognizes the difference
between the transaction price and fair value (a Day 1 difference) in the consolidated statement of
income unless it qualifies for recognition as some other type of asset. In cases where use is made
of data which is not observable, the difference between the transaction price and model value is
only recognized in the consolidated statement of income when the inputs become observable or
when the instrument is derecognized. For each transaction, the Group determines the appropriate
method of recognizing the Day 1 difference amount.
Derecognition of Financial Assets and Liabilities
Financial asset
A financial asset (or, where applicable a part of a financial asset or part of a group of similar
financial assets) is derecognized when:
• the rights to receive cash flows from the asset have expired;
• the Group retains the right to receive cash flows from the asset, but has assumed an obligation
to pay them in full without material delay to a third part under a ‘pass through’ arrangement;
or
• the Group has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a
pass-through arrangement, and has neither transferred nor retained substantially all the risks and
rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the
Group’s continuing involvement in the asset. Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the lower of the original carrying amount of the
asset and the maximum amount of consideration that the Group could be required to repay.
Financial liability
A financial liability is derecognized when the obligation under the liability is discharged,
cancelled or has expired. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original liability
and the recognition of a new liability, and the difference in the respective carrying amounts is
recognized in the consolidated statement of income.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the consolidated
balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, or to realize the asset and settle the
liability simultaneously.
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
*SGVMC113951*

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‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the
financial asset or the group of financial assets that can be reliably estimated. Evidence of
impairment may include indications that the borrower or a group of borrowers is experiencing
significant financial difficulty, default or delinquency in interest or principal payments, the
probability that they will enter bankruptcy or other financial reorganization, and where there are
observable data that indicates that there is a measurable decrease in the estimated future cash
flows, such as changes in arrears or economic conditions that correlate with defaults.
Financial assets carried at amortized cost
For financial assets carried at amortized cost, the Group first assesses whether objective evidence
of impairment exists individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant.
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is
measured as the difference between the asset’s carrying amount and the present value of the
estimated future cash flows (excluding future credit losses that have not been incurred). The
carrying amount of the asset is reduced through the use of an allowance account and the amount of
loss is charged to the consolidated statement of income. Interest income continues to be
recognized based on the original EIR of the asset. Receivables, together with the associated
allowance accounts, are written off when there is no realistic prospect of future recovery and all
collateral has been realized. If subsequently, the amount of the estimated impairment loss
decreases because of an event occurring after the impairment was recognized, the previously
recognized impairment loss is reduced by adjusting the allowance account. If a future write-off is
later recovered, any amounts formerly charged are credited to profit or loss.
If the Group determines that no objective evidence of impairment exists for an individually
assessed financial asset, whether significant or not, it includes the asset in a group of financial
assets with similar credit risk characteristics and collectively assesses for impairment. Those
characteristics are relevant to the estimation of future cash flows for groups of such assets by
being indicative of the debtors’ ability to pay all amounts due according to the contractual terms of
the assets being evaluated. Assets that are individually assessed for impairment and for which an
impairment loss is, or continues to be, recognized are not included in a collective assessment for
impairment.
The present value of the estimated future cash flows is discounted at the financial asset’s original
EIR. If a financial asset has a variable interest rate, the discount rate for measuring any
impairment loss is the current EIR, adjusted for the original credit risk premium.
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis
of such credit risk characteristics as geographical classification. Future cash flows in a group of
financial assets that are collectively evaluated for impairment are estimated on the basis of
historical loss experience for assets with credit risk characteristics similar to those in the group.
Historical loss experience is adjusted on the basis of current observable data to reflect the effects
of current conditions that did not affect the period on which the historical loss experience is based
and to remove the effects of conditions in the historical period that do not exist currently.
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.
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Investments in Associates
The Group’s investments in its associates are accounted for using the equity method of
accounting. An associate is an entity in which the Group has significant influence. The Group’s
investments in associates include its 49.00% interest in ISPL and HKHCL, entities based in
Singapore and Taiwan, respectively.
Under the equity method, the investment in the associate is carried in the consolidated balance
sheet at cost plus post acquisition changes in the Group’s share in the net assets of the associate.
The consolidated statement of income reflects the share in the results of operations of the
associate. Where there has been a change recognized directly in the equity of the associate, the
Group recognizes its share of any changes and discloses this, when applicable, in the consolidated
statement of changes in equity. Unrealized gains and losses resulting from transactions between
the Group and the associate are eliminated to the extent of the interest in the associate.
The Group’s share in the net income (loss) of its associates is shown in the consolidated statement
of income as ‘Equity in net earnings’. This is the profit attributable to equity holders of the
associate and therefore is profit after tax and non-controlling 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
as impairment loss in the consolidated statement of income.
Upon loss of significant influence over the associate, the Group measures and recognizes any
remaining investment at its fair value. Any difference between the carrying amount of the
associate upon loss of significant influence and the fair value of the retaining investment and
proceeds from disposal is recognized in profit or loss.
Property and Equipment
Property and equipment is stated at cost less accumulated depreciation and amortization and any
impairment in value.
The initial cost of property and equipment comprises its purchase price and any directly
attributable costs of bringing the property and equipment to its working condition and location for
its intended use.
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.
*SGVMC113951*

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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 CGU are written down to their recoverable amount (see policy on Impairment of Nonfinancial
Assets).
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of
the asset) is included in the consolidated statement of income in the year the asset is derecognized.
The asset’s residual values, useful lives and methods of depreciation and amortization are
reviewed, and adjusted if appropriate, at each financial year-end to ensure that these are consistent
with the expected pattern of economic benefits from the items of property and equipment.
Intangible Assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less any accumulated amortization and any
accumulated impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite.
Intangibles assets with finite lives are amortized over the useful economic life and assessed for
impairment whenever there is an indication that the intangible assets may be impaired. The
amortization period and the amortization method for an intangible asset with a finite useful life are
reviewed at least at each balance sheet date. Changes in the expected useful life or the expected
pattern of consumption of future economic benefits embodied in the asset is accounted for by
changing the amortization period or method, as appropriate, and treated as changes in accounting
estimates. The amortization expense on intangible assets with finite lives is recognized in the
consolidated statement of income in the expense category consistent with the function of the
intangible asset. Intangible assets with indefinite useful lives are tested for impairment annually
either individually or at the CGU level. Such intangibles are not amortized. The useful life of an
intangible asset with an indefinite life is reviewed annually to determine whether indefinite life
assessment continues to be supportable. If not, the change in the useful life assessment from
indefinite to finite is made on a prospective basis.
Gains or losses arising from the derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in the
consolidated statement of income when the asset is derecognized.
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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 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, LSML and WEPL (see Note 13) 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
Investments in associates
The Group assesses at each balance sheet date whether there is any indication that its investments
in associates may be impaired. If any indication exists, the Group estimates the asset’s
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value
less cost to sell and its value in use. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.
Property and equipment and software costs
At each balance sheet date, the Group assesses whether there is any indication that its property and
equipment and software costs may be impaired. When an indicator of impairment exists or when
an annual impairment testing for an asset is required, the Group makes a formal estimate of
recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell
and its value in use and is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets, in which
case the recoverable amount is assessed as part of the CGU to which it belongs. Where the
carrying amount of an asset (or CGU) exceeds its recoverable amount, the asset (or CGU) is
considered impaired and is written down to its recoverable amount. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset
(or CGU). In determining fair value less cost to sell, recent market transactions are taken into
account, if available. If no such transactions can be identified, an appropriate evaluation model is
used. These calculations are corroborated with available fair value indicators.
An impairment loss is charged to operations in the year in which it arises, unless the asset is
carried at a revalued amount, in which case the impairment loss is charged to the revaluation
increment of the said asset.
An assessment is made at each balance sheet date as to whether there is any indication that
previously recognized impairment losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A previously recognized impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable
amount since the last impairment loss was recognized. If that is the case, the carrying amount of
the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying
amount that would have been determined, net of depreciation and amortization, had no impairment
loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated
statement of income unless the asset is carried at a revalued amount, in which case the reversal is
*SGVMC113951*

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treated as a revaluation increase. After such a reversal, the depreciation and amortization expense
is adjusted in future years to allocate the asset’s revised carrying amount, less any residual value,
on a systematic basis over its remaining life.
Goodwill
Goodwill is reviewed for impairment annually or more frequently if events or changes in
circumstances indicate that the carrying value may be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of the CGU (or group
of CGUs) to which the goodwill relates. Where the recoverable amount of the CGU (or group of
CGUs) is less than the carrying amount of the CGU (or group of CGUs) to which goodwill has
been allocated, an impairment loss is recognized immediately in the consolidated statement of
income. Impairment losses relating to goodwill cannot be reversed for subsequent increases in its
recoverable amount in future periods. The Group performs its annual impairment test of goodwill
at the balance sheet date.
Input Value Added Tax (VAT)
Input VAT represents VAT imposed on the Parent Company by its suppliers for the acquisition of
goods and services as required by Philippine taxation laws and regulations. This will be claimed
as tax credits. Input VAT is stated at its estimated net realizable values.
Revenue Recognition
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 effective interest method of accounting.
The effective interest 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 gain/loss
Trading gain/loss represents results arising from trading activities, including all gains and losses
from changes in fair value of HFT investments.
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Rebates
Rebates pertaining to refunds of bank service charges are recognized upon collection.
Cost and Expenses
Costs and expenses encompass losses as well as those expenses that arise in the course of the
ordinary business activities of the Group. The following specific recognition criteria must also be
met before costs and expenses are recognized:
Cost of services
This includes all expenses associated with the specific delivery fees. Such costs are recognized
when the related delivery fees have been recognized.
Operating expenses
Operating expenses constitute costs incurred related to advertising and administering the business
and are recognized when incurred.
Taxes and licenses
This includes all other taxes, local and national, including real estate taxes, licenses and permit
fees included under ‘Other operating expenses’ in the consolidated statement of income.
Retirement Benefits
The Parent Company has a noncontributory defined benefit retirement plan administered by a
trustee, covering its permanent employees.
The retirement cost of the Parent Company is determined using the projected unit credit method.
Under this method, the current service cost is the present value of retirement benefits payable in
the future with respect to services rendered in the current period.
The liability recognized in the consolidated balance sheet in respect of defined benefit retirement
plan is the present value of the defined benefit obligation at the balance sheet date less the fair
value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past
service costs. The defined benefit obligation is calculated annually by an independent actuary
using the projected unit credit method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rates on Philippine
government bonds that have terms to maturity approximating the terms of the related retirement
liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are credited to or charged against income when the net cumulative unrecognized
actuarial gains and losses at the end of the previous period exceeded 10.00% of the higher of the
defined benefit obligation and the fair value of plan assets at that date. These gains or losses are
recognized over the expected average remaining working lives of the employees participating in
the plan.
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.
*SGVMC113951*

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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 operating leases. Operating lease payments are recognized as an expense in the
consolidated statement of income on a straight-line basis over the lease term.
Group as a lessor
Leases in which the Group does not transfer substantially all the risks and benefits of ownership of
the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating
lease are added to the carrying amount of the leased asset and recognized over the lease term on
the same basis as rental income. Contingent rents are recognized as revenue in the period in which
they are earned.
Share-based Payment
The Parent Company granted a stock purchase program to certain officers, employees and
individuals (see Note 19) that is subject to a lock-up or vesting period of two (2) years and which
ended on September 19, 2009 . The Parent Company accounted for the share-based payment as an
equity-settled transaction. The cost of equity-settled transactions is measured by reference to the
fair value of the equity instrument at the date at which they are granted. The expense is
recognized as part of ‘Salaries, wages and employee benefits’ in the consolidated statement of
income, 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 balance sheet date until
the vesting date reflects the extent to which the vesting period has expired and the Group’s best
estimate of the number of equity instruments that will ultimately vest. The expense in the
consolidated statement of income for the period represents the movement in cumulative expense
recognized at the beginning and end of the period.
Income Taxes
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantially enacted at the balance sheet date.
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Deferred tax
Deferred tax is provided, using the balance sheet liability method, on all temporary differences at
the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, including asset
revaluations. Deferred tax assets are recognized for all deductible temporary differences,
carryforward of unused tax credits from excess minimum corporate income tax (MCIT) over the
regular corporate income tax (RCIT), if any, and unused net operating loss carryover (NOLCO), if
any, to the extent that it is probable that taxable income will be available against which the
deductible temporary differences and carryforward of unused tax credits from excess MCIT over
RCIT and unused NOLCO can be utilized.
Deferred tax liabilities are not provided on non-taxable temporary differences associated with
investments in associates where the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not be reverse in the foreseeable
future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable income will be available to allow all
or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at
each balance sheet date and are recognized to the extent that it has become probable that future
taxable income will allow the deferred tax assets to be recovered.
Deferred tax assets and deferred tax liabilities are measured at the tax rates that are applicable to
the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantially enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Current tax and deferred tax relating to items recognized directly in equity are also recognized in
equity and not in the consolidated statement of income.
Borrowing Costs
Borrowing costs are recognized as an expense when incurred.
Equity
Capital stock is measured at par value for all shares issued and outstanding. When the shares are
sold at a premium, the difference between the proceeds and the par value is credited to ‘Capital
paid-in excess of par value’ account. Direct costs incurred related to 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 (losses) of the Group less dividends declared.
*SGVMC113951*

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Own equity instruments which are reacquired (treasury shares) are recognized at cost as ‘Treasury
stock’ and deducted from equity. No gain or loss is recognized in the consolidated statement of
income on the purchase, sale, issue or cancellation of the Group’s own equity instruments. Any
difference between the carrying amount and the consideration is recognized in ‘Capital paid-in
excess of par value’.
Earnings per Share
Basic earnings per share (EPS) is computed by dividing net income for the year 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.
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 Board of Directors (BOD) of the Parent Company. 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 consolidated statement of income, net of any
reimbursement.
Contingencies
Contingent liabilities are not recognized in the consolidated financial statements. These are
disclosed unless the possibility of an outflow of resources embodying economic benefits is
remote. A contingent asset is not recognized in the consolidated financial statements but disclosed
when an inflow of economic benefits is probable.
Events After the Reporting Period
Post year-end events that provide additional information about the Group’s financial position at
the balance sheet date (adjusting events) are reflected in the financial statements. Post year-end
events that are not adjusting events are disclosed in the notes to the financial statements when
material.
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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 28.
Standards Issued but not Effective
The Group will adopt the following standards and interpretations enumerated below when these
become effective. Except as otherwise indicated, the Group does not expect the adoption of these
new and amended PFRS and Philippine Interpretations to have significant impact on its financial
statements.
Effective in 2011
PAS 24 (Amended), Related Party Disclosures
The amended standard, effective for annual periods beginning on or after February 1, 2010,
clarifies the definition of a related party to simplify the identification of such relationships and to
eliminate inconsistencies in its application.
PAS 32, Financial Instruments: Presentation (Amendment) – Classification of Rights Issues
The amendment to PAS 32 is effective for annual periods beginning on or after February 1, 2010.
It amends the definition of a financial liability classifying rights issues (and certain options or
warrants) as equity instruments in cases where such rights are given pro rata to all of the existing
owners of the same class of an entity’s non-derivative equity instruments, or to acquire a fixed
number of the entity’s own equity instruments for a fixed amount in any currency.
Philippine Interpretation IFRIC 14 (Amendment) - Prepayments of a Minimum Funding
Requirement
The amendment to Philippine Interpretation IFRIC 14 is effective for annual periods beginning on
or after January 1, 2011, with retrospective application. The amendment provides guidance on
assessing the recoverable amount of a net pension asset. The amendment permits an entity to treat
the prepayment of a minimum funding requirement as an asset.
Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments
Philippine Interpretation IFRIC - 19 is effective for annual periods beginning on or after July 1,
2010. The interpretation clarifies that equity instruments issued to a creditor to extinguish a
financial liability qualify as consideration paid. The equity instruments issued are measured at
their fair value. In case that this cannot be reliably measured, the instruments are measured at the
fair value of the liability extinguished. Any gain or loss is recognized immediately in profit or
loss.
Improvements to PFRSs 2010
Improvements to IFRSs is an omnibus of amendments to PFRSs. The amendments have not been
adopted as they become effective for annual periods on or after either July 1, 2010 or
January 1, 2011. 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 3, Business Combinations
• PFRS 7, Financial Instruments: Disclosures
• PAS 1, Presentation of Financial Statements
• PAS 27, Consolidated and Separate Financial Statements
• Philippine Interpretation IFRIC - 13, Customer Loyalty Programmes
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PAS 12, Income Taxes (Amendment) - Deferred Tax: Recovery of Underlying Assets
The amendment to PAS 12 is effective for annual periods beginning on or after January 1, 2012.
It provides a practical solution to the problem of assessing whether recovery of an asset will be
through use or sale. It introduces a presumption that recovery of the carrying amount of an asset
will, normally, be through sale.
Effective in 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.
PFRS 7, Financial Instruments: Disclosures (Amendments) - Disclosures-Transfers of Financial
Assets
The amendments to PFRS 7 are effective for annual periods beginning on or after July 1, 2011.
The amendments will allow users of financial statements to improve their understanding of
transfer transactions of financial assets (for example, securitizations), including understanding the
possible effects of any risks that may remain with the entity that transferred the assets. The
amendments also require additional disclosures if a disproportionate amount of transfer
transactions are undertaken around the end of a reporting period.
Effective in 2013
PFRS 9, Financial Instruments: Classifications and Measurement
PFRS 9, as issued in 2010, reflects the first phase of the work on the replacement of PAS 39 and
applies to classification and measurement of financial assets and financial liabilities as defined in
PAS 39. In subsequent phases, hedge accounting and derecognition will be addressed. The
completion of this project is expected in early 2011.
The Group will assess the impact of these amendments on its financial position/performance when
they become effective.
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.
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Judgments
a. Functional Currency
PAS 21 requires management to use its judgment to determine the entity’s functional currency
such that it most faithfully represents the economic effects of the underlying transactions,
events and conditions that are relevant to the entity. In making this judgment, the Group
considers the following:
• the currency that mainly influences sales prices for financial instruments and services (this
will often be the currency in which sales prices for its financial instruments and services
are denominated and settled);
• the currency in which funds from financing activities are generated; and
• the currency in which receipts from operating activities are usually retained.
Each entity in the Group determines its own functional currency being the currency that
mainly influences each entity’s revenues and costs and expenses. The functional currency of
the Parent Company is the Philippine peso, while its subsidiaries are disclosed in Note 1.
b. Fair value of financial instruments
The fair values of financial instruments that are not quoted in active markets are determined
using valuation techniques. The carrying values of financial assets and financial liabilities of
the Group approximate their market values since these are short-term in nature (see Note 4).
c. Operating leases
Group as lessee
The Group has entered into commercial property leases as a lessee for its office premises. The
Group has determined, 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 - ten years only), that all significant risks and rewards of ownership of the properties it
leases are not transferable to the Group.
Group as lessor
The Group has entered into commercial property leases as lessor. The Group has determined,
based on an evaluation of the terms and conditions of the arrangements that it retains all the
significant risks and rewards of ownership of these properties and accounts for the contracts as
operating leases.
d. Contingencies
The Group is currently involved in various proceedings. The estimate of the probable costs
for the resolution of these claims has been developed in consultation with outside counsel
handling the defense in these matters and is based upon an analysis of potential results. The
Group currently does not believe these proceedings will have a material effect on the Group’s
financial position. It is possible, however, that future results of operations could be materially
affected by changes in the estimates or in the effectiveness of the strategies relating to these
proceedings (see Note 29).
*SGVMC113951*

- 21 -
e. 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.
f. Going concern
The Group’s management has made an assessment of the Group’s ability to continue as a
going concern and is satisfied that the Group has the resources to continue in business for the
foreseeable future. Furthermore, management is not aware of any material uncertainties that
may cast significant doubt upon the Group’s ability to continue as a going concern. Therefore,
the financial statements continue to be prepared on the going concern basis.
Estimates
a. Credit losses on receivables
The Group reviews its receivables at each balance sheet date to assess whether an allowance
for credit losses should be recorded in the consolidated balance sheet. In particular, judgment
by management is required in the estimation of the amount and timing of future cash flows
when determining the level of allowance required. Such estimates are based on assumptions
about a number of factors such as the length of the Group’s relationship with counterparties
(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, 2010, accounts receivable and other receivables are carried in the
consolidated balance sheet at P=1.06 billion and P=0.10 billion, respectively (see Notes 8 and 9).
As of December 31, 2009, accounts receivable and other receivables are carried in the
consolidated balance sheet at P=1.14 billion and P=0.11 billion, respectively. The Group has
assessed that there was no objective evidence of impairment on its receivables as of
December 31, 2010 and 2009.
b. Impairment of nonfinancial assets
(i) Investments in associates
The Group assesses impairment on its investments in associates whenever events or
changes in circumstances indicate that the carrying amount of the assets may not be
recoverable. Among others, the factors that the Group considers important, which could
trigger an impairment review on its investments in associates, include the following:
• deteriorating or poor financial condition;
• recurring net losses; and
*SGVMC113951*

- 22 -
• significant changes with an adverse effect on the associate have taken place during the
period, or will take place in the near future, in the technological, market, economic, or
legal environment in which the associate operates.
(ii) Goodwill
The Group determines whether goodwill is impaired at least on an annual basis. This
requires an estimation of the recoverable amount, which is the higher of the net selling
price or value in use of the CGU to which the goodwill is allocated.
The Group’s impairment test for goodwill is based on value in use calculations that use a
discounted cash flow model. The cash flows are derived from the budget for the next five
years and do not include restructuring activities that the Group is not yet committed to or
significant future investments that will enhance the asset base of the CGU being tested.
The recoverable amount is most sensitive to the discount rate used for the discounted cash
flow model as well as the expected future cash-inflows and the growth rate used for
extrapolation purposes.
(iii) Property and equipment and software costs
The Group assesses impairment on property and equipment and software costs whenever
events or changes in circumstances indicate that the carrying amount of the asset may not
be recoverable. The factors that the Group considers important, which could trigger an
impairment review, include the following:
• significant underperformance relative to expected historical or projected future
operating results;
• significant changes in the manner of use of the acquired assets or the strategy for
overall business; and
• significant negative industry or economic trends.
The Group recognizes an impairment loss whenever the carrying amount of the asset
exceeds its recoverable amount. The recoverable amount is determined based on the
asset’s value in use computation, which considers the present value of estimated future
cash flows expected to be generated from the continued use of the asset.
As of December 31, 2010 and 2009, no impairment losses were recognized on the Group’s
nonfinancial assets, including goodwill. The carrying values of the Group’s nonfinancial
assets follow:
2010 2009
Investments in associates (Note 11) P=20,932,236 P=19,024,162
Property and equipment - net (Note 12) 27,013,308 27,820,132
Goodwill (Note 13) 93,092,118 97,582,106
Software costs - net (Note 14) 2,081,746 2,704,684
c. Estimated useful lives of property and equipment and software costs
The Group reviews the estimated useful lives of property and equipment and software costs
annually based on the expected asset utilization after considering the expected future
technological developments and market behavior. Significant changes in these estimates
resulting from changes in the factors aforementioned could possibly affect the future results of
operations. Any decrease in the estimated useful life of the property and equipment and
software costs would decrease their respective balances and increase the recorded depreciation
and amortization.
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As of December 31, 2010 and 2009, the carrying values of Property and equipment and
Software costs follow:
2010 2009
Property and equipment (Note 12) P=27,013,308 P=27,820,132
Software costs (Note 14) 2,081,746 2,704,684
d. Recognition of deferred tax assets
The Group reviews the carrying amounts of deferred tax assets at each consolidated 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, 2010 and 2009, the Group’s recognized deferred tax assets amounted to
P=4.23 million and P=3.28 million, respectively. As of December 31, 2010 and 2009, the
Group’s recognized deferred tax liabilities amounted to P=0.03 million and nil, respectively.
As of December 31, 2010 and 2009, the Parent Company did not recognize net deferred tax
assets on existing deductible temporary differences amounting to P=2.85 million and P=5.05
million, respectively. Management believes that it is not highly probable that these temporary
differences will be realized in the future (see Note 26).
e. Present value of net retirement obligation
The cost of defined benefit retirement plan and other post employment benefits are determined
using actuarial valuations. The actuarial valuation involves making assumptions about
discount rates, expected rates of return on assets, future salary increases, mortality rates and
future retirement increases. Due to the long-term nature of these benefits, such estimates are
subject to significant uncertainty.
The assumed discount rates were determined using the market yields on Philippine
government bonds with terms consistent with the expected employee benefit payout as of the
consolidated balance sheet date. Refer to Note 18 for the details of assumptions used in the
calculation. As of December 31, 2010 and 2009, the present value of the net retirement
obligation of the Group amounted to P=0.78 million and P=3.63 million, respectively
(see Note 18).
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 and P=2.16 million in 2009 and 2008, respectively (see Note 19).
The vesting period of the stock purchase program ended on September 19, 2009.
*SGVMC113951*

4. Fair Value Measurement
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The following tables summarize the carrying amounts and fair values of the Group’s financial
assets and financial liabilities:
2010 2009
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
Financial assets at FVPL
Loans and receivables:
P=102,905,294 P=102,905,294 P=65,800,288 P=65,800,288
Cash and cash equivalents 883,817,947 883,817,947 962,813,647 962,813,647
Accounts receivable
Other receivables:
1,059,299,273 1,059,299,273 1,139,480,887 1,139,480,887
Minority shareholders 39,981,243 39,981,243 25,014,743 25,014,743
Related parties 16,602,911 16,602,911 18,927,425 18,927,425
Dividend – – 7,186,578 7,186,578
Others
Other noncurrent assets:
26,906,720 26,906,720 43,747,994 43,747,994
Refundable deposits 14,099,442 14,099,442 11,299,173 11,299,173
Total
Other Financial Liabilities
Beneficiaries and other payables:
P=2,143,612,830 P=2,143,612,830 P=2,274,270,735 P=2,274,270,735
Beneficiaries P=144,960,550 P=144,960,550 P=147,449,679 P=147,449,679
Agents, couriers and trading clients 44,773,236 44,773,236 86,624,144 86,624,144
Payable to suppliers 2,958,634 2,958,634 2,243,487 2,243,487
Accrued expenses 2,701,805 2,701,805 16,219,826 16,219,826
Advances from related parties 1,431,156 1,431,156 2,489,351 2,489,351
Dividends payable – – 3,915,372 3,915,372
Others 5,165 5,165 6,497,933 6,497,933
Interest-bearing loans 877,000,000 877,000,000 930,000,000 930,000,000
Total P=1,073,830,546 P=1,073,830,546 P=1,195,439,792 P=1,195,439,792
The following methods and assumptions were used to estimate the fair value of the financial
instruments:
Cash and cash equivalents, Account receivables, Other receivables, Beneficiaries and other
payables and Interest-bearing loans - carrying amounts approximate fair values due to the
relatively short-term maturities of these instruments.
Financial assets at FVPL - fair values are based on quoted market prices.
Refundable deposits - 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.
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As of December 31, 2010 and 2009, the financial instruments carried at fair value only pertain to
the Group’s financial assets at FVPL, 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 in 2010 and 2009.
5. Financial Risk Management Objectives and Policies
The Group’s principal financial instruments mainly comprise of short-term loans from banks. The
main purpose of these financial instruments is to raise funds for the Group’s fulfillment or delivery
of remittance transactions to beneficiaries. The Group also has various other financial assets and
liabilities such as cash and cash equivalents, accounts receivables and accounts payable to
beneficiaries, which arise directly from its remittance operations.
The main risks arising from the Group’s financial instruments are credit risk, foreign currency
risk, cash flow interest rate risk, fair value interest rate risk and liquidity risk. The BOD reviews
and approves policies for managing each of these risks and these are summarized below:
Credit Risk
Credit risk is the risk of loss resulting from the failure of a borrower or counterparty to perform its
obligations during the life of the transaction. This includes risk of non-payment by borrowers or
issuers, failed settlement of transactions and default on contracts.
The nature of its business exposes the Group to potential risk from difficulties in recovering
transaction money from foreign partners. Receivables from agents arise as a result of its
remittance operations in various regions of the globe. In order to address this, the Group has
maintained the following credit policies: (a) implement a contract that incorporates a bond and
advance payment cover such that the full amount of the transaction will be credited to the Group
prior to their delivery to the beneficiaries, which applies generally to all new agents of the Group
and in certain cases to old agents; (b) all foreign offices and agents must settle their accounts
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.
Receivables from agents and couriers are highly collectible and have a turnover ranging from 1 to
5 days and 30 to 60 days, respectively. Other receivables, which include advances to related
parties, are also highly collectible and are due in less than one year.
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The table below shows the maximum credit exposure of the Group per account classification as of
December 31, 2010 and 2009 (see Notes 6, 7, 8, 9 and 14):
2010 2009
Financial assets at FVPL P=102,905,294 P=65,800,288
Loans and receivables:
Cash and cash equivalents* 831,495,615 913,862,163
Accounts receivables 1,059,299,273 1,139,480,887
Other receivables:
Minority shareholders 39,981,243 25,014,743
Related parties 16,602,911 18,927,425
Dividend – 7,186,578
Others 26,906,720 43,747,994
Other noncurrent assets:
Refundable deposits 14,099,442 11,299,173
Total P=2,091,290,498 P=2,225,319,251
* excludes cash on hand
Maximum exposure for financial instruments recorded at fair value as shown above represent the
risk exposure as of respective balance sheet dates but not the maximum risk exposure that could
arise in the future as a result of changes in value.
The table below shows the maximum credit exposure of the Group per geographical classification
as of December 31, 2010 and 2009:
2010 2009
Asia Pacific P=1,869,838,619 P=2,035,284,877
Middle East 106,023,556 68,374,702
North America 58,180,050 61,943,096
Europe 57,248,273 59,716,576
Total P=2,091,290,498 P=2,225,319,251
There are no past due receivables as of December 31, 2010 and 2009. The Group classifies its
receivables as high grade. High grade financial assets includes instruments with credit ratings of
excellent, strong, good, or satisfactory, wherein the borrower has a low probability of default and
could withstand the normal business cycle. Financial assets at FVPL, which are issued by
reputable companies, are classified as high grade.
Foreign Currency Risk
Foreign currency risk is the risk to earnings or capital arising from changes in foreign exchange
rates. It is the Group’s policy that all daily foreign currencies, which arise as a result of its
remittance transactions, must be traded daily with bank partners only at prevailing foreign
exchange rates in the market. The daily closing foreign exchange rates shall be the guiding rate in
providing wholesale rates and retail rates to foreign offices and agents, respectively. The trading
proceeds will be used to pay out bank loans and other obligations of the Group.
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The tables below summarize the Group’s exposure to foreign exchange risk. Included in the tables
are the Group’s foreign currency-denominated monetary assets and liabilities as of
December 31, 2010 and 2009, and their PHP equivalent.
2010
Cash and Cash
PHP
Currency
Equivalents Receivables Payables Total Equivalent
CAD 1,109,576 2,765,810 (121,524) 3,753,862 P=164,519,939
HKD 5,410,983 14,370,305 (154,859) 19,626,429 110,564,310
EUR 1,303,292 360,688 (96,888) 1,567,092 90,850,617
USD 1,026,855 901,651 – 1,928,506 84,545,703
AUD 470,898 718,244 (14,991) 1,174,151 52,360,146
SGD 89,587 1,254,112 – 1,343,699 45,565,156
NTD – 23,731,378 – 23,731,378 35,581,120
GBP 153,415 570 (25,738) 128,247 8,715,202
NZD 128,277 105,825 (5,412) 228,690 7,659,688
QAR 275 – – 275 3,312
Net exposure P=600,365,193
2009
Cash and Cash
PHP
Currency
Equivalents Receivables Payables Total Equivalent
CAD 1,509,579 3,586,537 (242,276) 4,853,840 P=215,142,963
HKD 18,003,960 191,812 (762,940) 17,432,832 103,815,652
EUR 660,755 285,307 (56,025) 890,037 59,134,254
USD 1,218,815 1,311,537 – 2,530,352 116,902,262
AUD 961,220 1,775,058 (426,159) 2,310,119 94,720,654
SGD 5,654 1,443,109 – 1,448,763 47,642,803
NTD – 51,271,915 – 51,271,915 73,431,637
GBP 116,626 725,619 (17,674) 824,571 60,967,526
NZD 124,193 310,706 (15,392) 419,507 13,721,906
Net exposure P=785,479,657
The following tables set forth for the year indicated the impact of reasonably possible changes in
the rates of other currencies on pretax income.
2010
Change in
Change in
nominal
nominal
foreign currency Effect on foreign currency Effect on
Currency
exchange rate pretax income exchange rate pretax income
EUR +8.87 P=7,430,736 -3.04 (P=2,546,724)
USD +3.55 6,846,196 -1.61 (3,104,895)
CAD +1.75 6,041,607 -2.09 (7,215,405)
HKD +0.41 637,042 -0.08 (124,301)
SGD +0.32 429,984 -1.87 (2,512,717)
NTD +0.01 237,314 -0.12 (2,847,765)
NZD +1.03 226,486 -3.09 (679,457)
AUD +0.13 125,764 -7.05 (6,820,290)
GBP +8.01 118,164 -3.57 (52,665)
QAR +1.73 476 -4.08 (1,122)
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Change in nominal
2009
Change in nominal
foreign currency Effect on foreign currency Effect on
Currency
exchange rate pretax income exchange rate pretax income
EUR +4.75 P=1,028,328 -7.32 (P=1,584,707)
USD +3.00 7,591,056 -0.33 (835,016)
CAD +1.36 5,946,346 -7.19 (31,436,930)
HKD +0.78 1,389,065 -0.97 (1,727,426)
SGD +1.38 1,999,293 -2.19 (3,172,791)
NTD +1.73 88,700,413 -4.08 (209,189,413)
NZD +1.73 517,166 -4.08 (1,219,675)
AUD +3.51 6,681,524 -11.67 (22,214,639)
GBP +7.52 5,537,585 -11.25 (8,284,286)
Translation Risk
The Group’s consolidated statement of financial position is exposed to foreign exchange
fluctuations as these affect the translation of subsidiaries’ net assets and income and expenses
denominated in foreign currencies. The following tables set forth for the year indicated the impact
of reasonably possible changes in the rates of other currencies on equity.
2010
Change in
Change in
nominal
nominal
foreign currency Effect on foreign currency Effect on
Currency
exchange rate
equity exchange rate
equity
HKD +0.41 P=14,638,271 -0.08 (P=2,856,248)
CAD +1.75 855,520 -2.09 (1,021,735)
GBP +8.01 355,672 -3.57 (158,520)
EUR +8.87 (299,049) -3.04 102,493
NZD +1.03 (189,295) -3.09 567,885
AUD +0.13 25,632 -7.05 (738,995)
2009
Change in
Change in
nominal
nominal
foreign currency Effect on foreign currency Effect on
Currency
exchange rate
equity exchange rate
equity
HKD 0.78 18,518,265 -0.97 (23,029,124)
CAD 1.36 643,691 -7.19 (3,403,041)
GBP 7.52 223,690 -11.25 (334,643)
EUR 4.75 3,597,284 -7.32 (5,543,604)
NZD 1.73 (257,782) -4.08 607,948
AUD 3.51 672,502 -11.67 (2,235,925)
Cash Flow Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash
flows of financial instruments.
As of December 31, 2010 and 2009, 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.
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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, 2010
and 2009. There is no impact on the Group’s equity other than those already affecting the profit or
loss.
2010 2009
Increase in Sensitivity of Increase in Sensitivity of
basis points trading gains basis points trading gains
Currency PHP +50bps (1,495,140) +50bps (3,403,557)
Currency PHP -50bps 1,226,880 -50bps 3,963,733
Liquidity Risk
Liquidity or funding risk is the risk that an entity will encounter difficulty in raising funds to meet
commitments associated with financial instruments.
The 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, 2010 and 2009, the Parent Company has unused credit facilities
amounting to P=1.02 billion and P=0.60 billion, respectively (see Note 16).
Financial assets
Maturity profile of financial assets held for liquidity purposes is shown below. Analysis of debt
securities at FVPL into maturity groupings is based on the expected date on which these assets
will be realized. For other assets, the analysis is based on the remaining period from the end of the
reporting period to the contractual maturity date, or if earlier, the expected date the assets will be
realized.
Financial liabilities
The maturity grouping is based on the remaining period from the end of the reporting period to the
contractual maturity date. When a counterparty has a choice of when the amount is paid, the
liability is allocated to the earliest period in which the Group can be required to pay.
The tables below summarize the maturity profile of the Group’s financial instruments based on
undiscounted contractual payments.
Less than 5 days
2010
5 to 30 days 30 to 60 days Total
Financial assets
Cash and cash equivalents
Financial assets at fair value
P=873,637,916 P=10,180,031 P=– P=883,817,947
through profit or loss – – 102,905,294 102,905,294
Accounts receivables 1,059,299,273 – – 1,059,299,273
P=1,932,937,189 P=10,180,031 P=102,905,294 P=2,046,022,514
Financial liabilities
Beneficiaries and other payables:
Beneficiaries P=144,960,550 P=– P=– P=144,960,550
Agents, couriers and trading
clients 44,773,236 – – 44,773,236
Payable to suppliers – – 2,958,634 2,958,634
Accrued expenses – – 2,701,805 2,701,805
Advances to related parties – – 1,431,156 1,431,156
Others – – 5,165 5,165
Interest-bearing loans 395,273,055 483,077,528 – 878,350,583
P=585,006,841 P=483,077,528 P=7,096,760 P=1,075,181,129
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Less than 5 days
2009
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
Accounts receivables 1,139,480,887 – – 1,139,480,887
P=2,051,992,378 P=50,326,462 P=65,800,288 P=2,168,119,128
Financial liabilities
Beneficiaries and other payables:
Beneficiaries P=147,449,679 P=– P=– P=147,449,679
Agents, couriers and trading
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
6. Cash and Cash Equivalents
This account consists of:
2010 2009
Cash on hand P=52,322,332 P=48,951,484
Cash in banks (Note 25) 821,315,584 863,560,007
Short-term deposits 10,180,031 50,302,156
P=883,817,947 P=962,813,647
Cash in banks earn interest at the respective bank deposit rates. Short-term deposits are made for
varying periods of up to three months and earn interest at the respective short-term deposit rates.
In 2010, 2009 and 2008, interest income included in ‘Other income’ in the consolidated statements
of income amounted to P=3.47 million, P=7.90 million and P=7.21 million, respectively (see Note 23).
The Group’s cash and cash equivalents denominated in foreign currency, with corresponding
Philippine peso (PHP) equivalent, are as follows:
December 31, 2010 December 31, 2009
Amount PHP equivalent Amount PHP equivalent
EUR 1,303,292 P=75,557,071 660,755 P=43,900,708
CAD 1,109,576 48,629,219 1,509,579 66,911,002
USD 1,026,855 45,017,323 1,218,815 56,309,253
HKD 5,410,983 30,482,448 18,003,960 107,216,823
AUD 470,898 20,999,248 961,220 39,412,423
GBP 153,415 10,425,529 116,626 8,623,149
NZD 128,277 4,296,479 124,193 4,062,303
SGD 89,587 3,037,917 5,654 185,933
QAR 275 3,312 – –
P=238,448,546 P=326,621,594
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Cash in banks earn interest rates ranging as follows:
2010 2009 2008
PHP 0.50% to 2.00% 0.50% to 2.00% 0.50% to 2.00%
Foreign Currency Denominated 0.40% to 2.00% 0.40% to 2.00% 0.40% 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 $2.97 million (P=130.12 million) and US $1.57 million
(P=72.53 million) as of December 31, 2010 and 2009, respectively. As of December 31, 2010 and
2009, the carrying amount includes net unrealized gain of P=0.57 million and P=0.14 million,
respectively. Both realized and unrealized gains and losses on financial assets at FVPL are
included in ‘Net trading gains’ in the consolidated statements of income. Interest income earned
in 2010 and 2009 amounts to P=9.04 million and P=7.28 million, respectively, which are included in
‘Other income’ in the consolidated statements of income (see Note 23).
8. Accounts Receivable
Accounts receivable pertains mainly to receivables from agents and couriers. Receivables from
agents pertain to advances made to fund the remittance transactions to beneficiaries. These are
settled within 1 to 5 days from transaction date. Receivables from couriers pertain to advances
made to the courier companies to ease up the door-to-door delivery of the remittances to the
beneficiaries. These are settled within 30 to 60 days from transaction date.
9. Other Receivables
Other receivables consist of:
2010 2009
Minority shareholders P=39,981,243 P=25,014,743
Related parties (Note 25) 16,602,911 18,927,425
Bureau of Internal Revenue (BIR) 13,160,535 13,160,535
Dividend – 7,186,578
Others 26,906,720 43,747,994
P=96,651,409 P=108,037,275
Receivable from the BIR pertains to the excess payments made by the Parent Company in 2007
for the Initial Public Offering (IPO) percentage tax. As of December 31, 2010, the case is pending
resolution with the Court of Tax Appeals. The Parent Company believes that it will be able to
obtain the refund from the BIR.
Receivables from minority shareholders pertain to advances made to the minority shareholders of
IERCAG and WEPL. These are expected to be settled in 2011.
‘Others’ includes advances to employees, contractors and trading clients for foreign exchange
transactions. These outstanding receivables are due either on demand or within one year.
*SGVMC113951*

10. Other Current Assets
This account consists of:
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2010 2009
Prepaid expenses P=14,882,159 P=10,376,432
Visa cards inventory 8,054,220 9,308,037
Office supplies 199,689 443,118
Miscellaneous – 1,811,793
P=23,136,068 P=21,939,380
Prepaid expenses include prepayments for interest, rent, association dues and advertisements.
‘Miscellaneous’ pertains mainly to refundable deposits, which are due within one year.
11. Investments in Associates
The Parent Company’s investments in associates consist of the following:
2010 2009
Acquisition cost:
ISPL P=12,600,000 P=12,600,000
HKHCL 3,573,974 3,573,974
Accumulated equity in net earnings:
16,173,974 16,173,974
Balance at beginning of year 2,850,188 11,099,925
Equity in net earnings during the year 2,504,455 6,146,792
Dividends (596,381) (14,396,529)
Balance at end of year 4,758,262 2,850,188
P=20,932,236 P=19,024,162
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 NTD 2.45 million (P=3.57 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.
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 a remittance business based in
Singapore. 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 entity.
The Monetary Authority of Singapore has yet to approve the sale of 49.00% equity interest in
ISPL to the Parent Company. The Parent Company and its legal counsel believe that the
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.
*SGVMC113951*

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The following tables present the summarized financial information of the Parent Company’s
associates as of and for the years ended December 31, 2010 and 2009:
2010
Balance Sheets Statements of Income
Total Total
Gross
Assets Liabilities Revenue
(In thousands)
Income Net Income
HKHCL P=69,159 P=53,006 P=65,648 P=22,037 P=5,996
ISPL 61,209 40,638 56,130 33,198 4,754
P=130,368 P=93,644 P=121,778 P=55,235 P=10,750
2009
Balance Sheets Statements of Income
Total Total
Gross Net Income
Assets Liabilities Revenue
(In thousands)
Income (Loss)
ISPL P=74,159 P=42,914 P=38,046 P=37,708 P=13,027
HKHCL 31,970 30,572 21,096 14,295 (966)
P=106,129 P=73,486 P=59,142 P=52,003 P=12,061
12. Property and Equipment
The composition of and movements in this account follow:
Office and
Communication
Equipment
Transportation
and Delivery
Equipment
2010
Furniture
and Fixtures
Leasehold
Improvements Total
Cost
Balance at beginning of year P=38,536,745 P=6,084,508 P=9,454,682 P=27,086,081 P=81,162,016
Additions 6,135,953 3,116,461 1,074,464 3,712,282 14,039,160
Disposals (195,500) (2,202,818) (91,412) – (2,489,730)
Exchange adjustments (923,547) 3,920 (290,382) (162,038) (1,372,047)
Balance at end of year 43,553,651 7,002,071 10,147,352 30,636,325 91,339,399
Accumulated Depreciation and
Amortization
Balance at beginning of year 27,932,474 2,422,598 5,391,722 17,595,090 53,341,884
Depreciation and amortization 5,770,034 1,330,203 1,255,968 4,188,639 12,544,844
Disposals (88,344) (708,790) (25,900) – (823,034)
Exchange adjustments (539,029) 2,679 (124,394) (76,859) (737,603)
Balance at the end of the year 33,075,135 3,046,690 6,497,396 21,706,870 64,326,091
Net Book Value at End of Year P=10,478,516 P=3,955,381 P=3,649,956 P=8,929,455 P=27,013,308
Office and
Communication
Equipment
Transportation
and Delivery
Equipment
2009
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 end of year 38,536,745 6,084,508 9,454,682 27,086,081 81,162,016
Accumulated Depreciation and
Amortization
Balance at beginning of 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 end of 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
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As of December 31, 2010 and 2009, the cost of fully depreciated property and equipment still in
use by the Group amounted to P=22.64 million and P=18.28 million, respectively.
Details of depreciation and amortization follow:
13. Goodwill
Consolidated
2010 2009 2008
Property and equipment - net P=12,544,844 P=12,554,531 P=10,111,351
Software cost - net (Note 14) 1,525,720 1,665,896 1,482,668
P=14,070,564 P=14,220,427 P=11,594,019
Movements in goodwill follow:
2010 2009
Balance at beginning of year P=97,582,106 P=91,517,043
Exchange adjustment (4,489,988) 6,065,063
Balance at end of year P=93,092,118 P=97,582,106
The Group’s goodwill relate to the excess of the acquisition cost over the ownership interest
acquired by the Parent Company in IGRL, IAPL, IRCL, LSML and WEPL, as follows:
IGRL and IAPL
On June 2, 2007, the Parent Company’s BOD approved the acquisition of 100.00% ownership
interest in both IGRL and IAPL for a consideration of P=71.20 million and P=8.55 million,
respectively. IGRL and IAPL are based in United Kingdom and Australia, respectively. These
entities, which are in the remittance business, have the same operations as the Parent Company.
Accordingly, on June 29, 2007, the Parent Company acquired 100.00% ownership interest in
IGRL and IAPL through the execution of deeds of assignment by the previous stockholders (who
are also the stockholders of the Parent Company) of both entities. Under the deeds of assignment,
the existing advances by the Parent Company to certain stockholders were applied as payment for
the purchase of IGRL and IAPL.
WEPL
On June 2, 2007, the Parent Company’s BOD also approved the acquisition of 20.00% ownership
interest in WEPL for a consideration of P=5.60 million. WEPL was incorporated and is based in
Australia, and has the same operations as the Parent Company. Accordingly, on June 29, 2007,
the Parent Company acquired 20.00% ownership interest in WEPL through the execution of a
deed of assignment by the previous stockholders (who are also stockholders of the Parent
Company) of the entity. Under the deed of assignment, the existing advances of the Parent
Company to certain stockholders were applied as payment for the purchase of WEPL. On
September 4, 2007, an additional 15.00% ownership interest in WEPL was acquired by the Parent
Company for a consideration of P=3.43 million.
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.
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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 dates 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 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
IRCL
On October 1, 2004, the Parent Company’s BOD approved the acquisition of 65.00% of IRCL for
a consideration of P=10.34 million. IRCL, which was incorporated on July 16, 2001, is based in
Canada, and has the same operations as the Parent Company. The fair value of the net assets of
IRCL at acquisition date is P=8.25 million and the fair value of the 65.00% ownership interest was
P=5.36 million. The difference of P=4.98 million between the consideration paid and the fair value
of the interest acquired in IRCL was recognized as goodwill. On July 26, 2006, the additional
30.00% ownership interest from a minority stockholder in IRCL was transferred to the Parent
Company at no additional cost.
On June 2, 2007, the Parent Company’s BOD approved the acquisition of 5.00% ownership
interest from a minority stockholder for a consideration of P=3.10 million taking its ownership in
IRCL to 100.00%. Accordingly on June 29, 2007, IRCL’s minority stockholder executed a deed
of assignment to transfer the ownership interest to the Parent Company. Under the deed of
assignment, the existing advances by the Parent Company to a certain stockholder was applied as
payment for the purchase of IRCL. The fair value of the net assets of IRCL at acquisition date
was P=11.50 million, and the fair value of the additional interest acquired was P=0.57 million. The
difference of P=2.53 million between the consideration paid and the minority interest acquired in
IRCL was recognized as goodwill.
LSML
LSML was incorporated on March 16, 2001, is based in Hong Kong, and has the same operations
as the Parent Company. On June 2, 2007, the Parent Company’s BOD approved the acquisition of
49.00% ownership interest in LSML from its minority stockholders for a consideration of
P=24.70 million taking its ownership in LSML to 100.00%. Accordingly, on June 29, 2007, the
minority stockholder of LSML (who is also a stockholder of the Parent Company) executed a deed
of assignment to transfer its ownership interest to the Parent Company. Under the deed of
assignment, the existing advances by the Parent Company to the stockholder were applied as
payment for the purchase of LSML. The fair value of the net assets of LSML at acquisition date
was P=8.23 million and the fair value of the additional interest acquired was P=4.03 million. The
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difference of P=20.67 million between the consideration paid and the minority interest acquired in
LSML was recognized as goodwill.
Goodwill acquired through business combination has been allocated to five individual CGUs as
follows:
2010 2009
IGRL P=50,991,293 P=55,479,979
LSML 19,681,102 20,804,330
IAPL 8,624,783 7,930,154
IRCL 7,440,857 7,525,310
WEPL 6,354,083 5,842,333
P=93,092,118 P=97,582,106
The recoverable amount of the CGUs have been determined based on value-in-use calculation
using cash flow projections from financial budgets approved by senior management covering a
five-year period. The discount rate applied to cash flow projections ranges from 7.31% to 8.83%
in 2010 and 7.41% to 9.13% in 2009 and cash flows beyond the five year-period are extrapolated
using a steady growth rate of 0.13% to 1.43% in 2010 and 1.00% in 2009.
The calculation of the value-in-use of the CGUs are most sensitive to the following assumptions:
• Growth rate - The forecasted growth rate is based on a very conservative steady growth rate
that does not exceed the long term average rate for the industry.
• Pre-tax discount rates - Discount rates reflect management’s estimate of the risks specific to
each CGU. This is the benchmark used by management to assess operating performance.
With regard to the assessment of the value-in-use of each CGU, management believes that no
reasonably possible change in any of the above key assumptions would cause the carrying value
of the goodwill to materially exceed its recoverable amount.
14. Software Costs - net and Other Noncurrent Assets
Movements in software costs follow:
2010 2009
Cost
Balance at beginning of year P=11,425,409 P=9,247,962
Additions 852,274 2,177,447
Exchange adjustments 106,946 –
Balance at end of year
Accumulated Amortization
12,384,629 11,425,409
Balance at beginning of year 8,720,725 7,054,829
Amortization (Note 12) 1,525,720 1,665,896
Exchange Adjustment 56,438 –
Balance at end of year 10,302,883 8,720,725
Net Book Value at end of year P=2,081,746 P=2,704,684
*SGVMC113951*

Other noncurrent assets consist of:
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2010 2009
Input VAT P=28,493,804 P=27,821,193
Refundable deposits 14,099,442 11,299,173
Deferred input VAT 350,550 375,043
Others 44,000 131,008
P=42,987,796 P=39,626,417
The Parent Company has applied for tax credits on input VAT with the BIR and is awaiting for the
issuance of its tax credit certificates (TCCs). The Parent Company believes that it will be able to
obtain these TCCs for the outstanding input VAT.
Refundable deposits pertain to the security deposits made by the Parent Company and some of its
subsidiaries in relation to rental lease agreements for the office spaces in the Philippines, Hong
Kong, United Kingdom, Canada and Italy.
15. Beneficiaries and Other Payables
This account consists of:
2010 2009
Beneficiaries P=144,960,550 P=147,449,679
Agents, couriers and trading clients 44,773,236 86,624,144
Payable to suppliers 2,958,634 2,243,487
Accrued expenses 2,701,805 16,219,826
Withholding tax payable 2,045,708 2,492,773
Advances from related parties (Note 25) 1,431,156 2,489,351
Payable to government agency 620,661 718,374
Dividends payable – 3,915,372
Others 5,165 6,497,933
P=199,496,915 P=268,650,939
Payables to beneficiaries, agents, couriers and trading clients are noninterest-bearing and are
normally settled within 1 to 30 days.
Accrued expenses include the Group’s accrual for various operating expenses such as vacation and
sick leave benefits, courier charges, training and development, professional fees and utilities.
16. Interest-Bearing Loans
This account pertains to the Parent Company’s unsecured, short-term interest-bearing pesodenominated
bank loans.
As of December 31, 2010 and 2009, the outstanding loans payable of the Parent Company
amounted to P=877.00 million and P=930.00 million, respectively.
*SGVMC113951*

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In 2010, 2009 and 2008, these loans bear annual interest rates ranging from 5.50% to 6.00%,
7.00% to 8.00% and 8.75% to 13.00%, respectively. In 2010, 2009 and 2008, the Parent
Company recognized interest expense of P=29.21 million, P=48.68 million and P=13.25 million,
respectively.
The Parent Company has an unused credit facility with various banks amounting to P=1.02 billion
and P=0.60 billion as of December 31, 2010 and 2009, respectively.
The loans outstanding as of December 31, 2010 were subsequently paid on various dates in
January and February 2011.
17. Equity
Capital Stock
As of December 31, 2010 and 2009, the Parent Company’s capital stock consists of:
Number
of Shares Amount
Common stock
Authorized - P=1.00 par value per share
Issued:
1,000,000,000 P=1,000,000,000
Balance at beginning and end of year 562,417,000 P=562,417,000
Less treasury stock (9,329,000) (40,115,150)
Issued and outstanding 553,088,000 P=522,301,850
Dividends
On March 19, 2010, the BOD of the Parent Company declared cash dividends amounting to
P=26.60 million or P=0.0481 per share, payable to shareholders-of-record as of April 8, 2010. The
declaration was subsequently ratified and confirmed by the Parent Company’ shareholders during
their annual meeting held on July 23, 2010. The payment was made on May 5, 2010.
On March 23, 2009, the BOD of the Parent Company declared cash dividends amounting to
P=26.01 million or P=0.0471 per share, payable to shareholders-of-record as of April 7, 2009. The
declaration was subsequently ratified and confirmed by the Parent Company’ shareholders during
their annual meeting held on July 17, 2009. The payment of dividends was made on May 6, 2009.
On 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. The
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.
Treasury Stock
On August 15, 2008, the Parent Company’s BOD approved the Buy-back Program to acquire up
to ten million (10,000,000) of its shares, representing approximately 1.87% of the Parent
Company’s total outstanding common shares, from the market. The Parent Company purchased
9,329,000 shares (P=40.12 million) in 2008 under the Buy-back Program and the same number of
shares is outstanding as of December 31, 2010 and 2009.
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In 2009 and 2008, the Parent Company purchased 130,900 shares (P=0.13 million) and
548,500 shares (P=0.55 million), respectively, under the SSPP. The 808,100 shares (including
128,700 shares purchased in 2007) purchased under the SSPP, were subsequently transferred in
September 2009 to the retirement fund of the Parent Company (see Note 19).
Capital Management
The Group’s capital is composed of its equity, which amounts to P=1.27 billion and P=1.24 billion as
of December 31, 2010 and 2009, respectively.
The Group’s capital management activities seek to ensure that it maintains a healthy capital ratio
in order to support its businesses and maximize shareholder’s value by optimizing the level and
mix of its capital resources. Decisions on the allocation of capital resources are being performed
as part of the strategic planning review.
The Group manages its capital structure and makes adjustments to it, in light of changes in
economic conditions. To maintain or adjust the capital structure, the Group may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. No changes
were made in the objectives, policies or processes during the years ended December 31, 2010 and
2009.
The Group’s objective is to ensure that there are no known events that may trigger direct or
contingent financial obligation that is material to the Company, including default or acceleration
of an obligation.
The Group is not subject to externally imposed capital requirements.
18. Retirement Plan
The Parent Company has a noncontributory defined benefit retirement plan covering substantially
all of its regular employees. Under this retirement plan, all qualified employees are entitled to
cash benefits after satisfying age and service requirements.
Provisions for pension obligations are established for benefits payable in the form of retirement
pensions. Benefits are dependent on years of service and the respective employee’s latest monthly
salary.
The Parent Company determined its transitional liability for defined benefit retirement plan merely
as the present value of the obligation since the Parent Company had no plan assets at the date of
the adoption. Transitional liability is amortized prospectively over five (5) years starting on
January 1, 2005.
The latest actuarial valuation report on the retirement plan is dated December 31, 2010.
The principal actuarial assumptions used in determining the retirement liability of the Parent
Company as of January 1, 2010 and 2009 follow:
2010 2009
Discount rate 11.25% 15.20%
Future salary increases 9.00% 5.00%
Expected return on plan assets 6.00% 5.00%
Average remaining working life (in years) 31.8 31.0
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The discount rates used to arrive at the present value of the obligation as of December 31, 2010
and 2009 are 9.69% and 11.25%, respectively.
The amounts recognized in the consolidated balance sheets follow:
2010 2009
Present value of obligation P=21,847,360 P=10,080,515
Fair value of plan assets 15,196,930 12,421,022
Deficit (surplus) 6,650,430 (2,340,507)
Unrecognized Actuarial (loss) gain (5,872,169) 5,972,130
Retirement liability P=778,261 P=3,631,623
The movements in the fair value of plan assets in 2010 and 2009 are as follows:
2010 2009
Balance at beginning of year P=12,421,022 P=3,168,050
Contributions 5,229,490 4,800,000
Actuarial (loss) gain (2,643,029) 4,452,972
Expected return on plan assets 738,073 –
Benefits paid from plan assets (548,626) –
Balance at end of year P=15,196,930 P=12,421,022
The actual return on the plan assets of the Parent Company in 2010 and 2009 amounted to a loss
of P=1.90 million and a gain of P=4.45 million, respectively.
The movements in the present value of obligation follow:
2010 2009
Balance at beginning of year P=10,080,516 P=6,574,511
Current service cost 2,143,246 1,819,273
Interest cost 1,134,058 999,326
Benefits paid from plan assets (548,626) –
Actuarial loss 9,038,166 687,406
Balance at end of year P=21,847,360 P=10,080,516
The amounts of retirement expense included in ‘Salaries, wages and employee benefits’ in the
consolidated statements of income follow:
2010 2009 2008
Current service cost P=2,143,246 P=1,819,273 P=1,988,492
Interest cost 1,134,058 999,326 788,666
Expected return on plan assets (738,073) – –
Actuarial (gains) loss recognized (163,104) (53,418) 32,268
Amortization of transitional liability – 252,228 252,227
P=2,376,127 P=3,017,409 P=3,061,653
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The movements in the retirement liability recognized in the balance sheets are as follows:
2010 2009
Balance at beginning of year P=3,631,624 P=5,414,214
Retirement expense 2,376,127 3,017,409
Contributions (5,229,490) (4,800,000)
Balance at end of year P=778,261 P=3,631,623
Movements in the unrecognized actuarial (gains) losses are as follows:
2010 2009
Balance at beginning of year (P=5,972,130) (P=2,259,982)
Actuarial loss (gain) during the year 11,681,195 (3,765,566)
Actuarial gain recognized 163,104 53,418
Balance at end of year P=5,872,169 (P=5,972,130)
The major categories of plan assets follow:
2010 2009
Private equity securities* P=10,249,745 P=5,091,030
Government debt securities 2,760,719 1,764,648
Deposits in banks 2,047,387 4,843,861
Due from BSP – 700,000
Interest receivable 162,126 32,842
Trust fee payable (23,047) (11,359)
P=15,196,930 P=12,421,022
*This includes P=0.81 million of the Parent Company’s own equity securities bought under SSPP (see Note 19).
The amounts of experience adjustments relating to the plan liabilities of the Parent Company
follow:
2010 2009 2008 2007
Present value of obligation P=21,847,360 P=10,080,516 P=6,574,511 P=7,770,113
Fair value of plan assets 15,196,930 12,421,022 3,168,050 –
Deficit (surplus) 6,650,430 (2,340,506) 3,406,461 7,770,113
Changes in actuarial assumptions 9,932,542 1,070,082 (3,766,312) (9,785,892)
Experience adjustments on plan
liabilities (894,376) (382,676) (206,448) 4,176,250
Experience adjustments on plan assets (2,643,029) 4,452,972 – –
19. Special Stock Purchase Program (SSPP)
On July 20, 2007, the Parent Company’s BOD approved the proposal to set up a SSPP totaling
15,000,000 shares for the employees of the Parent Company who have been in the service for at
least one (1) calendar year as of June 30, 2007, as well as its BOD members, resource persons and
consultants (collectively referred to as “the Participants”). A Notice of Exemption under Section
10.2 of the Securities Regulations Code had been approved by the SEC on September 13, 2007.
Notwithstanding the aforesaid confirmation by the SEC of the exempt status of the SSPP shares,
the SEC nonetheless required the Parent Company to include the SSPP shares among the shares
of the Parent Company which were registered with the SEC prior to the conduct of its Initial
Public Offering in October 2007. The registration of the Parent Company shares, together with
the SSPP shares, was rendered effective on October 5, 2007.
*SGVMC113951*

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All 15,000,000 shares were exercised. The shares subject to the SSPP were sold at par value or
P=1.00 per share. Total shares amounting to P=11.74 million were paid in full, while the difference
totaling P=3.26 million were paid by way of salary loan. Shares acquired through SSPP are subject
to a lock-up period of two years from date of issue, which ended on September 19, 2009.
The sale is further subject to the condition that should the officer or employee resign from the
Parent Company prior to the expiration of the lock-up period, the shares purchased by such
resigning employee or officer shall be purchased at cost by the Parent Company as Treasury stock.
As of December 31, 2009, 24 employees resigned (9 in 2009, 13 in 2008 and 2 in 2007) and their
shares totaling 808,100 (130,900 in 2009, 548,500 in 2008 and 128,700 in 2007) were bought
back by the Parent Company at par value.
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 18).
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 and P=2.16 million in 2008.
20. Operating Lease Commitments
The Parent Company has entered into the following lease agreements for its office spaces:
(a) On September 30, 2008, a lease agreement with Sta. Elena Divisoria Condo was made for a
period of 60 months commencing on October 1, 2008 to September 30, 2013 with a 10.00%
escalation rate effective on the second year up to the fifth year of the lease term. The contract
was cancelled in May 2009.
(b) A lease agreement with Wynsum Realty was entered into for a period of 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. The contract was renewed for a period of
3 years commencing on September 1, 2010 to August 31, 2013.
(c) On February 7, 2007, a lease agreement with Oakridge Properties (Unit 2503) was made for a
period of 36 months commencing on February 1, 2007 to January 31, 2010 with a 10.00%
escalation on the monthly rental payable effective on the 13th and 25th month of the lease
term. The contract was renewed for another 2 years commencing on February 01, 2010 to
January 31, 2012.
(d) Operating lease agreements with Oakridge Properties (Unit 2603) were entered into for a
period of 12 months, which commenced on December 1, 2008 and expired on November 30,
2009. The contract was renewed for a period of 2 years commencing on December 1, 2009 to
November 30, 2011 with a 10.00% escalation on the aggregate monthly rental on the 13th
month of the lease term.
*SGVMC113951*

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(e) In December 2005, a lease agreement with Oakridge Properties (Unit 2703) was entered into
for a period of 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 24 months
commencing February 1, 2009 to January 31, 2011 with a 10.00% escalation rate on the
aggregate monthly rental effective on the 13th month of the lease term.
Total rent expense of the Parent Company amounted to P=11.74 million, P=11.11 million and
P=9.95 million in 2010, 2009 and 2008, respectively (see Note 25).
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=50.38 million, P=39.33 million, and P=32.53 million in 2010, 2009 and 2008,
respectively.
Future minimum rentals payable under non-cancelable operating leases are as follows:
2010 2009
Within one year P=51,662,348 P=39,529,430
After one year but not more than five years 71,152,989 79,221,914
More than five years – 6,145,388
P=122,815,337 P=124,896,732
21. Marketing Expenses
This account consists of:
2010 2009 2008
Marketing and promotions P=34,637,750 P=22,120,718 P=52,311,765
Advertising and publicity 8,883,266 10,856,700 5,269,536
P=43,521,016 P=32,977,418 P=57,581,301
22. Other Operating Expenses
This account consists of:
2010 2009 2008
Taxes and licenses P=7,580,920 P=4,531,430 P=2,824,233
Repairs and maintenance 4,902,356 4,634,302 3,785,376
Association dues 1,927,949 2,066,643 1,623,984
Insurance 1,835,663 1,726,711 1,818,438
Donations and contributions 1,155,280 1,209,115 –
Disallowance of input VAT by BIR – 1,338,804 –
Miscellaneous 4,464,242 2,673,515 4,927,248
P=21,866,410 P=18,180,520 P=14,979,279
‘Miscellaneous’ includes various expenses incurred for the business development of potential
foreign offices and other related expenses.
*SGVMC113951*

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23. Realized Foreign Exchange Gains - Net and Other Income
‘Realized foreign exchange gains - net’ represents currency exchange income (net of losses)
arising primarily from trading third currencies to Philippine pesos. These third currencies are
collected from the remittance transactions.
‘Other income’ consists of:
2010 2009 2008
Interest income (Notes 6 and 7) P=12,514,490 P=15,181,685 P=7,213,676
Rebates 6,728,713 14,608,204 –
Unrealized foreign exchange gain - net 1,769,202 5,172,171 4,722,355
Others 6,120,474 12,488,020 12,847,617
P=27,132,879 P=47,450,080 P=24,783,648
Interest income pertains to interest earned from deposits, short-term placements with banks and
financial assets at FVPL.
Rebates pertain to refunds of bank service charges and foreign exchange special rates relating to
the remittance transactions of WEPL.
‘Others’ pertains to sub-lease rental income of subsidiaries.
24. Other Charges
Other charges of the Group pertain mainly to filing and regulatory fees paid by foreign offices and
goods and services tax written off.
25. Related Party Transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
In the ordinary course of business, the Group transacts with its related parties. Under the Group’s
existing policies, these transactions are made substantially on the same terms and conditions as
transactions with other individuals and businesses of comparable risks. The Group engages in
transactions with related parties consisting primarily of the following:
(a) Delivery fees in the Group’s consolidated statements of income in 2010, 2009 and 2008,
including those arising from clients of associates are as follows:
2010 2009 2008
HKHCL P=33,202,567 P=25,364,567 P=–
ISPL 25,080,948 27,016,303 22,103,338
P=58,283,515 P=52,380,870 P=22,103,338
*SGVMC113951*

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(b) The Parent Company leases office spaces from Oakridge Properties. Rent expense amounted
to P=9.25 million, P=8.17 million and P=8.02 million in 2010, 2009, and 2008, respectively.
Oakridge Properties is owned by JTKC, one of the stockholders of the Parent Company.
(c) 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.
(d) The Parent Company’s retirement fund is maintained with Sterling Bank of Asia (SBA), an
affiliate, as trustee (see Note 18).
(e) The Parent Company has deposits amounting to P=118.62 million and P=129.71 million with
SBA, an affiliate, as of December 31, 2010 and 2009, respectively. These deposits earned
P=1.12 million and P=1.16 million interest income in 2010 and 2009, respectively.
In addition to the related information disclosed elsewhere in the consolidated financial statements,
the following are the yearend balances in respect of transactions with related parties which were
carried in terms that prevail in arm’s length transactions during the year:
2010 2009
Advances to related parties (Note 9):
Affiliates
Subsidiaries:
P=6,977,436 P=4,338,803
IAPL 4,056,364 5,628,134
I-Remit-USA 1,778,138 1,805,866
INZL – 1,261,266
LSML 270,405 285,849
IERCAG 207,445 265,126
PSAGL – 2,452
WEPL
Associates
94,113 –
HKHCL 3,021,191 2,944,333
ISPL – 2,181,783
Others 197,819 213,813
Advances from related parties (Note 15):
P=16,602,911 P=18,927,425
Affiliates P=1,431,156 P=2,489,351
Advances to affiliates include cash advances to stockholders, officers and directors.
As of December 31, 2010 and 2009, no provision for credit losses has been recognized for the
advances to related parties.
In 2010, the Parent Company received dividend amounting to P=0.60 million from dividends
declared by ISPL.
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The compensation of the key management personnel of the Group in 2010, 2009 and 2008 are as
follows:
2010 2009 2008
Short-term employee benefits P=21,059,431 P=19,232,031 P=17,538,530
Post employee benefits 549,541 721,632 1,035,615
Share-based program – 435,303 618,250
P=21,608,972 P=20,388,966 P=19,192,395
26. Income Taxes
The provision for income tax consists of:
2010 2009 2008
Current:
RCIT P=28,576,367 P=40,862,007 P=57,164,870
Final 643,945 1,534,105 1,052,470
Deferred (921,460) (2,471,568) –
P=28,298,852 P=39,924,544 P=58,217,340
Parent Company
Republic Act (RA) No. 9337, An Act Amending National Internal Revenue Code, provides that the
RCIT rate shall be 35.00% until December 31, 2008. Starting January 1, 2009, the RCIT rate shall
be 30.00%. It also provides that the interest allowed as a deductible expense is reduced by an
amount equivalent to 42.00% until December 31, 2008 and 33.00% starting January 1, 2009 of
interest income subjected to final tax.
An MCIT of 2.00% on modified gross income is computed and compared with the RCIT. Any
excess of the MCIT over the RCIT is deferred and can be used as a tax credit against future
income tax liability for the next three years. In addition, current tax regulations provide for the
ceiling on the amount of entertainment, amusement and recreation (EAR) expenses that can be
claimed as a deduction against taxable income. The actual EAR expenses incurred by the Parent
Company was P=2.84 million, P=2.62 million and P=4.08 million in 2010, 2009 and 2008,
respectively. The allowed EAR limit was P=2.80 million, P=2.74 million, and P=3.13 million in 2010,
2009 and 2008, respectively. Under the regulation, EAR expenses allowed as deductible expense
for taxpayers engaged in the sale of services, including exercise of profession and use of lease
properties, like the Parent Company, is limited to the actual EAR paid or incurred but not to
exceed 1.00% of net revenue.
RA No. 9504, An Act Amending National Internal Revenue Code, provides that starting
July 1, 2008, the optional standard deduction (OSD) equivalent to 40.00% of gross income may be
claimed as an alternative deduction in computing for the RCIT. For the 2010 and 2009 RCIT
computation, the Parent Company elected to claim itemized expense deductions instead of the
OSD.
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The table below shows the income tax rates provided on the assessable profit for the year of each
subsidiary:
2010 2009
PSAGL 16.50% 16.50%
LSML 16.50% 16.50%
IAPL 30.00% 30.00%
WEPL 30.00% 30.00%
INZL 30.00% 30.00%
IGRL 21.00% 21.00%
IRCL 34.20% 34.20%
As of December 31, 2010 and 2009, the deferred tax assets and liability recognized by the Group
relates to the tax effects of the following:
2010 2009
Deferred tax assets on:
Unused tax losses P=3,669,877 P=2,848,750
Unused tax credits 443,755 321,002
Accumulated depreciation 119,288 98,338
Capital allowance – 13,605
Subtotal
Less deferred tax liability on:
4,232,920 3,281,695
Capital allowance 29,765 –
Net deferred tax assets P=4,203,155 P=3,281,695
The Parent Company did not set up deferred tax assets on the following temporary differences:
2010 2009
Temporary differences on:
Accrued interest P=2,074,213 P=1,894,391
Accrued courier charges 393,793 2,085,271
Others 381,961 1,068,597
P=2,849,967 P=5,048,259
The management of the Parent Company believes that it is not highly probable that these
temporary differences will be realized in the future.
The Group did not recognize any deferred tax liabilities on unremitted earnings of the Group’s
investments in associates amounting to P=4.76 million, P=2.85 million and P=11.10 million in 2010,
2009 and 2008, respectively (see Note 11).
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A reconciliation of the statutory income tax rates and the effective income tax rates in 2010, 2009
and 2008 follows:
2010 2009 2008
Statutory income tax 30.00% 30.00% 35.00%
Tax effects of:
Nondeductible interest expense 0.34 0.45 0.41
Interest income subject to final tax (3.98) (5.20) (0.42)
Unrecognized deferred tax asset 3.68 (2.18) 1.26
Others – – (5.32)
Effective income tax 30.04% 23.07% 30.93%
27. Earnings Per Share
The basis of calculation for EPS attributable to equity holders of the Parent Company follows:
2010 2009 2008
a. Net income attributable to equity holders
of the Parent Company
b. Weighted average number of outstanding
P=77,551,227 P=136,379,766 P=130,785,730
common shares of the Parent Company 553,088,000 552,569,950 558,695,875
c. Basic/diluted earnings per share (a/b) P=0.14 P=0.25 P=0.23
As of December 31, 2010, 2009 and 2008, there are no dilutive potential common shares.
28. Segment Reporting
The Group’s operating businesses are organized and managed separately according to
geographical areas representing strategic business units. These segments are the bases on which
the Group reports its segment information. Transactions among segments are conducted at market
rates on an arm’s length basis. The Group only reports a geographical segment analysis and no
secondary business segment was presented since all operations relate to the remittance business.
Segment assets are those operating assets that are employed by a segment in its operating activities
that are either directly attributable to the segment or can be allocated to the segment on a
reasonable basis.
Segment liabilities are those operating liabilities that result from the operating activities of a
segment and that are either directly attributable to the segment or can be allocated to the segment
on a reasonable basis.
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Segment information as of and for the years ended December 31, 2010, 2009 and 2008 follow
(amounts in thousands):
2010
North Adjustments
Philippines Asia Pacific Europe America and eliminations Total
Financial Performance
Revenue P=463,249 P=128,963 P=68,640 P=109,058 P=– P=769,910
Cost of services (180,569) (2,665) (13,160) (11,532) – (207,926)
Gross income 282,680 126,298 55,480 97,526 – 561,984
Operating expenses (204,595) (67,535) (101,354) (97,186) – (470,670)
Other income (expense) 15,896 20,957 529 675 (35,158) 2,899
Income before income tax 93,981 79,720 (45,345) 1,015 (35,158) 94,213
Provision for income tax (16,430) (11,242) (278) (349) – (28,299)
Net income 77,551 68,478 (45,623) 666 (35,158) 65,914
Non-controlling interest
Net income attributable to equity
– – – – 11,637 11,637
holders of the Parent Company P=77,551 P=68,478 (P=45,624) P=667 (P=23,521) P=77,551
Financial Position
Total assets P=2,420,439 P=256,831 P=85,244 P=62,144 (P=468,508) P=2,356,150
Total liabilities P=1,138,679 P=53,107 P=84,183 P=40,718 (P=232,440) P=1,084,247
Other Segment Information -
Capital expenditures P=5,949 P=1,015 P=6,081 P=994 P=– P=14,039
Depreciation and amortization P=8,059 P=1,800 P=2,137 P=2,075 P=– P=14,071
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
Non-controlling interest
Net income attributable to equity
– – – – 3,231 3,231
holders of the Parent Company P=129,407 P=92,628 (P=16,020) P=6,725 (P=76,361) P=136,379
Financial Position
Total assets P=2,404,902 P=248,228 P=73,889 P=81,580 (P=320,488) P=2,488,111
Total liabilities P=1,160,025 P=103,799 P=21,373 P=60,602 (P=110,115) P=1,235,684
Other Segment Information
Capital expenditures P=1,914 P=1,192 P=729 P=5,548 P=– P=9,383
Depreciation and amortization P=8,615 P=1,755 P=1,574 P=2,276 P=– P=14,220
*SGVMC113951*

- 50 -
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
Non-controlling interest
Net income attributable to equity
– – – – 808 808
holders of the Parent Company P=78,431 P=65,228 (P=18,065) P=9,843 (P=4,651) P=130,786
Financial Position
Total assets P=1,970,838 P=113,618 P=85,996 P=52,919 (P=249,793) P=1,973,578
Total liabilities P=873,605 P=40,170 P=117,103 P=33,039 (P=206,412) P=857,505
Other Segment Information
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
The Group has no intersegment revenues and costs of services in 2010 and 2009.
The Group has no significant customers which contributes 10% or more of the consolidated
revenues.
Segment assets as of December 31, 2010 and 2009 do not include investments in subsidiaries
amounting to P=228.98 million and inter-segment receivables amounting to P=211.64 and
P=107.98 million, respectively, which are eliminated on consolidation.
Capital expenditures, which pertain to property, plant and equipment acquired, are disclosed
according to the asset’s physical location.
The Group’s share in net income of associates amounting to P=2.50 million, P=6.15 million and
P=8.87 million in 2010, 2009 and 2008, respectively, are included under Asia Pacific.
29. Contingencies
The Group has various contingencies arising in the ordinary conduct of business which have
pending decision with the courts or are being contested, the outcome of which are not presently
determinable.
In the opinion of management and its legal counsel, the eventual liability under these lawsuits or
claims, if any, will not have a material or adverse effect on the Group’s financial position and
results of operations. The information usually required by PAS 37 is not disclosed on the grounds
that it can be expected to prejudice the outcome of these lawsuits, claims and assessments.
30. Approval of the Release of the Financial Statements
The accompanying consolidated financial statements were approved and authorized for issue by
the Parent Company’s BOD on March 25, 2011.
*SGVMC113951*

I-Remit, Inc.
Parent Company Financial Statements
December 31, 2010 and 2009
and for the Years Ended December 31, 2010, 2009 and 2008
and
Independent Auditors’ Report
SyCip Gorres Velayo & Co.

I-REMIT, INC.
NOTES TO PARENT COMPANY FINANCIAL STATEMENTS
1. Corporate Information
I-Remit, Inc. (the Parent Company) was incorporated in the Philippines and was registered with
the Securities and Exchange Commission (SEC) on March 5, 2001 and started commercial
operations on November 11, 2001.
The Parent Company, which is domiciled in the Philippines, has its registered office and principal
place of business at 26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City. The
Parent Company’s common shares were listed with the Philippine Stock Exchange on October 17,
2007.
The Parent Company and its subsidiaries (collectively referred to as “the Group”), except Power
Star Asia Group Limited (PSAGL), are primarily engaged in the business of fund transfer and
remittance services of any form or kind of currencies or monies, either by electronic, telegraphic,
wire or any other mode of transfer; delivery of such funds or monies, both in the domestic and
international market, by providing either courier or freight forwarding services; and conduct
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.
The Parent Company’s subsidiaries and associates follow:
Country of Functional
Effective Percentage of Ownership
December 31
Incorporation Currency 2010 2009 2008
Subsidiaries:
International Remittance
Canadian
(Canada) Ltd. (IRCL) Canada Dollar (CAD) 100.00 100.00 100.00
Lucky Star Management
Hong Kong
Limited (LSML) Hong Kong Dollar (HKD) 100.00 100.00 100.00
IRemit Global Remittance United Great Britain
Limited (IGRL)
Kingdom Pound (GBP) 100.00 100.00 100.00
I-Remit Australia Pty Ltd
Australian
(IAPL)
Australia Dollar (AUD) 100.00 100.00 100.00
Worldwide Exchange Pty
Australian
Ltd (WEPL)*
IREMIT EUROPE
Remittance Consulting
Australia Dollar (AUD) 65.00 65.00 65.00
AG (IERCAG)
Austria Euro (EUR) 74.90 74.90 74.90
I-Remit New Zealand
New Zealand
Limited (INZL) New Zealand Dollar (NZD)
Hong Kong
100.00 100.00 100.00
PSAGL
Associates:
Hong Kong Dollar (HKD) 100.00 100.00 100.00
IRemit Singapore Pte Ltd
Singapore
(ISPL)
Singapore Dollar (SGD) 49.00 49.00 49.00
Hwa Kung Hong & Co.,
New Taiwan
Ltd.(HKHCL)
Taiwan Dollar (NTD) 49.00 49.00
–
* Consists of direct voting interest of 35.00% and indirect voting interest through IAPL of 30.00%
The Parent Company is the ultimate parent company of the Group.
*SGVMC116162*

2. Summary of Significant Accounting Policies
- 2 -
Basis of Preparation
The accompanying financial statements of the Parent Company have been prepared on a historical
cost basis. The Parent Company’s financial statements are presented in Philippine peso, the
Parent Company’s functional currency, and all values are rounded to the nearest peso except when
otherwise indicated.
Statement of Compliance
The accompanying financial statements of the Parent Company have been prepared in compliance
with Philippine Financial Reporting Standards (PFRS).
Changes in Accounting Policies
The accounting policies adopted in the preparation of the parent company financial statements are
consistent with those of the previous financial year except for the adoption of the following new
and amended PFRS, Philippine Accounting Standards (PAS) and Philippine Interpretations which
became effective on January 1, 2010. The adoption of these new standards, amendments and
interpretations did not have any impact on the financial statements of the Parent Company.
New Standards and Interpretations
• PFRS 3, Business Combinations (Revised)
• PAS 27, Consolidated and Separate Financial Statements (Amended)
• Philippine Interpretation International Financial Reporting Interpretation Committee
(IFRIC) 17, Distributions of Non-Cash Assets to Owners
Amendments to Standards
• PAS 39 Amendment - Eligible Hedged Items
• PFRS 2 Amendments - Group Cash-settled Share-based Payment Transactions
Improvement to PFRS 2008
• PFRS 5, Non-current Assets Held for Sale and Discontinued Operations
Improvements to PFRSs 2009
• PFRS 2, Share-based Payment
• PFRS 5, Non-current Assets Held for Sale and Discontinued Operations
• PFRS 8, Operating Segments
• PAS 1, Presentation of Financial Statements
• PAS 7, Statement of Cash Flows
• PAS 17, Leases
• PAS 34, Interim Financial Reporting
• PAS 36, Impairment of Assets
• PAS 38, Intangible Assets
• PAS 39, Financial Instruments: Recognition and Measurement
• Philippine Interpretation IFRIC 9, Reassessment of Embedded Derivatives
• Philippine Interpretation IFRIC 16, Hedge of a Net Investment in a Foreign Operation
*SGVMC116162*

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Foreign Currency Transactions and Translations
The functional and presentation currency of the Parent Company is the Philippine peso.
Transactions denominated in foreign currencies are recorded in Philippine peso at the transaction
date based on Philippine Dealing System (PDS) closing rates. Foreign currency-denominated
monetary assets and liabilities are translated to Philippine peso based on the PDS closing rate
prevailing at the balance sheet date and foreign currency-denominated income and expenses at the
PDS weighted average rate (PDSWAR) for the year. Foreign exchange differences arising from
revaluation and translation of foreign currency-denominated monetary assets and liabilities are
credited to or charged against operations in the year in which the rates change. Non-monetary
items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates as at the dates of the initial transactions.
Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash, with original maturities of
three months or less from the dates of placement and that are subject to an insignificant risk of
changes in fair value.
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 Parent Company, and (b) the derecognition of an asset and recognition of any gain
or loss on disposal on the day that it is delivered by the Parent Company. Receivables,
beneficiaries and other payables, and interest-bearing loans are recognized when cash is received
by the Parent Company or advanced to the borrowers/beneficiaries.
The 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 Parent Company
categorizes its financial assets as: financial assets at FVPL, differentiating those that are held for
trading and those designated as such, loans and receivables, held-to-maturity (HTM) investments
and available-for-sale (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, 2010 and 2009, the Parent Company has no financial assets and financial
liabilities at FVPL, AFS investments and HTM investments.
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 method less any allowance for credit losses. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees and costs that
are an integral part of the effective interest rate (EIR). Gains and losses are recognized in the
parent company statement of income when the receivables are derecognized or impaired, as well
as through the amortization process. Receivables are classified as current assets when the Parent
Company expects to realize or collect the asset within twelve months from the balance sheet date.
Otherwise, these are classified as non-current assets.
*SGVMC116162*

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Classified under this category are the Parent Company’s ‘Cash and cash equivalents’, ‘Accounts
receivable’, ‘Other receivables’ and refundable deposits included under ‘Other noncurrent assets’.
Other financial liabilities
Issued financial instruments or their components, which are not designated as at FVPL, are
classified as other financial liability, where the substance of the contractual arrangement results in
the Parent Company having an obligation either to deliver cash or another financial asset to the
holder, or to satisfy the obligation other than by the exchange of a fixed amount of cash or another
financial asset for a fixed number of its own equity shares. These include liabilities arising from
operations or borrowings. The components of issued financial instruments that contain both
liability and equity elements are accounted for separately, with the equity component being
assigned the residual amount after deducting from the instrument as a whole the amount separately
determined as the fair value of the liability component on the date of issue.
After initial measurement, other financial liabilities are subsequently measured at amortized cost
using the effective interest method.
Other financial liabilities include ‘Beneficiaries and other payables’ and ‘Interest-bearing loans’.
Determination of fair value
The fair value for financial instruments traded in active markets at the balance sheet date is based
on their quoted market prices or dealer price quotations (bid price for long positions and ask price
for short positions), without any deduction for transaction costs. When current bid and ask prices
are not available, the price of the most recent transaction provides evidence of the current fair
value as long as there has not been a significant change in economic circumstances since the time
of the transaction.
For all other financial instruments not listed in an active market, the fair value is determined by
using appropriate valuation methodologies. Valuation methodologies include net present value
techniques, comparison to similar instruments for which market observable prices exist, option
pricing models, and other relevant valuation models.
Day 1 difference
Where the transaction price in a non-active market is different from the fair value from other
observable current market transactions in the same instrument or based on a valuation technique
whose variables include only data from an observable market, the Parent Company recognizes the
difference between the transaction price and fair value (a Day 1 difference) in the parent company
statement of income unless it qualifies for recognition as some other type of asset. In cases where
use is made of data which is not observable, the difference between the transaction price and
model value is only recognized in the parent company statement of income when the inputs
become observable or when the instrument is derecognized. For each transaction, the Parent
Company determines the appropriate method of recognizing the Day 1 difference amount.
Derecognition of Financial Assets and Liabilities
Financial asset
A financial asset (or, where applicable a part of a financial asset or part of a group of similar
financial assets) is derecognized when:
• the rights to receive cash flows from the asset have expired;
• the Parent Company retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to a third part under a ‘pass through’
arrangement; or
*SGVMC116162*

- 5 -
• the Parent Company has transferred its rights to receive cash flows from the asset and either
(a) has transferred substantially all the risks and rewards of the asset, or (b) has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.
When the Parent Company has transferred its rights to receive cash flows from an asset or has
entered into a pass-through arrangement, and has neither transferred nor retained substantially all
the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the
extent of the Parent Company’s continuing involvement in the asset. Continuing involvement that
takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Parent Company
could be required to repay.
Financial liability
A financial liability is derecognized when the obligation under the liability is discharged,
cancelled or has expired. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original liability
and the recognition of a new liability, and the difference in the respective carrying amounts is
recognized in the parent company statement of income.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet
if, and only if, there is a currently enforceable legal right to offset the recognized amounts and
there is an intention to settle on a net basis, or to realize the asset and settle the liability
simultaneously.
Impairment of Financial Assets
The Parent Company assesses at each balance sheet date whether there is an objective evidence
that a financial asset or group of financial assets is impaired. A financial asset or a group of
financial assets is deemed to be impaired if, and only if, there is an objective evidence of
impairment as a result of one or more events that has occurred after the initial recognition of the
asset (an incurred ‘loss event’) and that loss event (or events) has an impact on the estimated
future cash flows of the financial asset or the group of financial assets that can be reliably
estimated. Evidence of impairment may include indications that the borrower or a group of
borrowers is experiencing significant financial difficulty, default or delinquency in interest or
principal payments, the probability that they will enter bankruptcy or other financial
reorganization, and where there are observable data that indicates that there is a measurable
decrease in the estimated future cash flows, such as changes in arrears or economic conditions that
correlate with defaults.
Financial assets carried at amortized cost
For financial assets carried at amortized cost, the Parent Company first assesses whether objective
evidence of impairment exists individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant.
*SGVMC116162*

- 6 -
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is
measured as the difference between the asset’s carrying amount and the present value of the
estimated future cash flows (excluding future credit losses that have not been incurred). The
carrying amount of the asset is reduced through the use of an allowance account and the amount of
loss is charged to the parent company statement of income. Interest income continues to be
recognized based on the original EIR of the asset. Receivables, together with the associated
allowance accounts, are written off when there is no realistic prospect of future recovery and all
collateral has been realized. If subsequently, the amount of the estimated impairment loss
decreases because of an event occurring after the impairment was recognized, the previously
recognized impairment loss is reduced by adjusting the allowance account. If a future write-off is
later recovered, any amounts formerly charged are credited to profit or loss.
If the Parent Company determines that no objective evidence of impairment exists for an
individually assessed financial asset, whether significant or not, it includes the asset in a group of
financial assets with similar credit risk characteristics and collectively assesses for impairment.
Those characteristics are relevant to the estimation of future cash flows for groups of such assets
by being indicative of the debtors’ ability to pay all amounts due according to the contractual
terms of the assets being evaluated. Assets that are individually assessed for impairment and for
which an impairment loss is, or continues to be, recognized are not included in a collective
assessment for impairment.
The present value of the estimated future cash flows is discounted at the financial asset’s original
EIR. If a financial asset has a variable interest rate, the discount rate for measuring any
impairment loss is the current EIR, adjusted for the original credit risk premium.
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis
of such credit risk characteristics as geographical classification. Future cash flows in a group of
financial assets that are collectively evaluated for impairment are estimated on the basis of
historical loss experience for assets with credit risk characteristics similar to those in the group.
Historical loss experience is adjusted on the basis of current observable data to reflect the effects
of current conditions that did not affect the period on which the historical loss experience is based
and to remove the effects of conditions in the historical period that do not exist currently.
Estimates of changes in future cash flows reflect, and are directionally consistent with changes in
related observable data from period to period (such as changes in payment status, or other factors
that are indicative of incurred losses in the group and their magnitude). The methodology and
assumptions used for estimating future cash flows are reviewed regularly by the Parent Company
to reduce any differences between loss estimates and actual loss experience.
Investments in Subsidiaries and Associates
Subsidiaries
Investments in subsidiaries in the parent company financial statements are accounted for under the
cost method of accounting. Subsidiaries of the Parent Company are shown in Note 1.
Associates
The Parent Company’s investments in its associates are accounted for using the cost method of
accounting. An associate is an entity in which the Parent Company has significant influence. The
Parent Company's investments in associates include its 49.00% interest in ISPL and HKHCL,
entities based in Singapore and Taiwan, respectively.
*SGVMC116162*

- 7 -
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 subsidiaries and
associates arising after the date of acquisition and is reported as ‘Dividends’ under ‘Other income’
in the parent company statement of 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.
Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of
the property and equipment as follows:
Office and communication equipment 3 years
Transportation and delivery equipment 3 to 5 years
Furniture and fixtures 3 to 5 years
Leasehold improvements 5 years or the term of the lease,
whichever is shorter
The carrying values of property and equipment are reviewed for impairment when events or
changes in circumstances indicate the carrying value may not be recoverable. If any such
indication exists and where the carrying values exceed the estimated recoverable amount, the asset
or cash-generating units (CGU) are written down to their recoverable amount (see policy on
Impairment of Nonfinancial Assets).
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of
the asset) is included in the parent company statement of income in the year the asset is
derecognized.
The asset’s residual values, useful lives and methods of depreciation and amortization are
reviewed, and adjusted if appropriate, at each financial year-end to ensure that these are consistent
with the expected pattern of economic benefits from the items of property and equipment.
Software costs
Software costs are carried at cost less accumulated amortization and any impairment in value. The
cost of the asset is the amount of cash or cash equivalents paid or the fair value of the other
considerations given up to acquire the asset at the time of its acquisition or production. Software
costs are amortized on a straight-line basis over its estimated useful life of three (3) years.
*SGVMC116162*

- 8 -
The asset’s amortization period and amortization method are reviewed at least at each balance
sheet date. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset is accounted for by changing the amortization period or
method, as appropriate, and treated as changes in accounting estimates.
Impairment of Nonfinancial assets
Investments in subsidiaries and associates
The Parent Company assesses at each balance sheet date whether there is any indication that its
investments in subsidiaries and associates may be impaired. If any indication exists, the Parent
Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher
of an asset’s or CGU’s fair value less cost to sell and its value in use. Where the carrying amount
of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.
Property and equipment and software costs
At each balance sheet date, the Parent Company assesses whether there is any indication that its
property and equipment and software costs may be impaired. When an indicator of impairment
exists or when an annual impairment testing for an asset is required, the Parent Company makes a
formal estimate of recoverable amount. Recoverable amount is the higher of an asset’s (or CGU’s)
fair value less costs to sell and its value in use and is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or
groups of assets, in which case the recoverable amount is assessed as part of the CGU to which it
belongs. Where the carrying amount of an asset (or CGU) exceeds its recoverable amount, the
asset (or CGU) is considered impaired and is written down to its recoverable amount. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset (or CGU). In determining fair value less cost to sell, recent market
transactions are taken into account, if available. If no such transactions can be identified, an
appropriate valuation model is used. These calculations are corroborated by available fair value
indicators.
An impairment loss is charged to operations in the year in which it arises, unless the asset is
carried at a revalued amount, in which case the impairment loss is charged to the revaluation
increment of the said asset.
An assessment is made at each balance sheet date as to whether there is any indication that
previously recognized impairment losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A previously recognized impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable
amount since the last impairment loss was recognized. If that is the case, the carrying amount of
the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying
amount that would have been determined, net of depreciation and amortization, had no impairment
loss been recognized for the asset in prior years. Such reversal is recognized in the parent
company statement of income unless the asset is carried at a revalued amount, in which case the
reversal is treated as a revaluation increase. After such a reversal, the depreciation and
amortization expense is adjusted in future years to allocate the asset’s revised carrying amount,
less any residual value, on a systematic basis over its remaining life.
Input Value Added Tax (VAT)
Input VAT represents VAT imposed on the Parent Company by its suppliers for the acquisition of
goods and services as required by Philippine taxation laws and regulations. This will be claimed
as tax credits. Input VAT is stated at its estimated net realizable values.
*SGVMC116162*

- 9 -
Revenue Recognition
The Parent Company 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 Parent Company 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 is recognized based on the effective
interest method of accounting.
The effective interest 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 Parent
Company estimates cash flows from the financial instrument (for example, prepayment options)
but does not consider future credit losses. The calculation includes all fees and points paid or
received between parties to the contract that are an integral part of the EIR, transaction costs and
all other premiums or discounts.
Once a financial asset or a group of financial assets has been written down as a result of an
impairment loss, interest income is recognized thereafter using the rate of interest used to discount
the future cash flows for the purpose of measuring the impairment loss.
Dividends
Dividend income is recognized when the Parent Company’s right to receive payment is
established.
Rebates
Rebates pertaining to refunds of bank service charges are recognized upon collection.
Costs and Expenses
Costs and expenses encompass losses as well as those expenses that arise in the course of the
ordinary business activities of the Parent Company. The following specific recognition criteria
must also be met before costs and expenses are recognized:
Cost of services
This includes all expenses associated with the specific delivery fees. Such costs are recognized
when the related delivery fees have been recognized.
Operating expenses
Operating expenses constitute costs incurred related to advertising and administering the business
and are recognized when incurred.
Taxes and licenses
This includes all other taxes, local and national, including real estate taxes, licenses and permit
fees included under ‘Other operating expenses’ in the parent company statement of income.
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Retirement Benefits
The Parent Company has a noncontributory defined benefit retirement plan administered by a
trustee, covering its permanent employees.
The retirement cost of the Parent Company is determined using the projected unit credit method.
Under this method, the current service cost is the present value of retirement benefits payable in
the future with respect to services rendered in the current period.
The liability recognized in the parent company balance sheet in respect of defined benefit
retirement plan is the present value of the defined benefit obligation at the balance sheet date less
the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses
and past service costs. The defined benefit obligation is calculated annually by an independent
actuary using the projected unit credit method. The present value of the defined benefit obligation
is determined by discounting the estimated future cash outflows using interest rates on Philippine
government bonds that have terms to maturity approximating the terms of the related retirement
liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are credited to or charged against income when the net cumulative unrecognized
actuarial gains and losses at the end of the previous period exceeded 10.00% of the higher of the
defined benefit obligation and the fair value of plan assets at that date. These gains or losses are
recognized over the expected average remaining working lives of the employees participating in
the plan.
Past-service costs, if any, are recognized immediately in income, unless the changes to the
retirement plan are conditional on the employees remaining in service for a specified period of
time (the vesting period). In this case, the past-service costs are amortized on a straight-line basis
over the vesting period.
The defined benefit asset or liability comprises the present value of the defined benefit obligation
less past service costs not yet recognized and less the fair value of plan assets out of which the
obligations are to be settled directly. The value of any asset is restricted to the sum of any past
service cost not yet recognized and the present value of any economic benefits available in the
form of refunds from the plan or reductions in the future contributions to the plan.
Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of
the arrangement at the inception date of whether the fulfillment of the arrangement is dependent
on the use of a specific asset or assets or the arrangement conveys a right to use the asset. A
reassessment is made after inception of the lease only if one of the following applies:
(a) there is a change in contractual terms, other than a renewal or extension of the arrangement;
(b) a renewal option is exercised or extension granted, unless the term of the renewal or extension
was initially included in the lease term;
(c) there is a change in the determination of whether fulfillment is dependent on a specified asset;
or
(d) there is a substantial change to the asset.
When a reassessment is made, lease accounting shall commence or cease from the date when the
change in circumstances gave rise to the reassessment for scenarios (a), (c), or (d) and at the date
of renewal or extension for scenario (b).
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Parent Company as a lessee
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as an operating lease. Operating lease payments are recognized as an expense in the
parent company statement of income on a straight-line basis over the lease term.
Parent Company as a lessor
Leases in which the Parent Company does not transfer substantially all the risks and benefits of
ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating
an operating lease are added to the carrying amount of the leased asset and recognized over the
lease term on the same bases as rental income. Contingent rents are recognized as revenue in the
period in which they are earned.
Share-based Payment
The Parent Company granted a stock purchase program to certain officers, employees and
individuals (see Note 17) that is subject to a lock-up or vesting period of two (2) years and which
ended on September 19, 2009 . The Parent Company accounted for the share-based payment as an
equity-settled transaction. The cost of equity-settled transactions is measured by reference to the
fair value of the equity instrument at the date at which they are granted. The expense is
recognized as part of ‘Salaries, wages and employee benefits’ in the parent company 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 balance sheet date until
the vesting date reflects the extent to which the vesting period has expired and the Parent
Company’s best estimate of the number of equity instruments that will ultimately vest. The
expense in the parent company statement of income for the period represents the movement in
cumulative expense recognized at the beginning and end of the period.
Income Taxes
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted at the balance sheet
date.
Deferred tax
Deferred tax is provided, using the balance sheet liability method, on all temporary differences at
the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, including asset
revaluations. Deferred tax assets are recognized for all deductible temporary differences,
carryforward of unused tax credits from excess minimum corporate income tax (MCIT) over the
regular corporate income tax (RCIT), if any, and unused net operating loss carryover (NOLCO), if
any, to the extent that it is probable that taxable income will be available against which the
deductible temporary differences and carryforward of unused tax credits from excess MCIT over
RCIT and unused NOLCO can be utilized.
Deferred tax liabilities are not provided on non-taxable temporary differences associated with
investments in subsidiaries and associates.
*SGVMC116162*

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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 parent company 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’. If the ‘Capital paid-in excess of par value’ is not sufficient, the excess is
charged against the ‘Retained earnings’.
When the Parent Company issues more than one class of stock, a separate account is maintained
for each class of stock and the number of shares issued.
‘Retained earnings’ represents accumulated earnings (losses) of the Parent Company less
dividends declared.
Own equity instruments which are reacquired (treasury shares) are recognized at cost and
deducted from equity as ‘Treasury stock’. No gain or loss is recognized in the parent company
statement of income on the purchase, sale, issue or cancellation of the Parent Company’s own
equity instruments. Any difference between the carrying amount and the consideration is
recognized in ‘Capital paid-in excess of par value’.
Dividends on Common Shares
Dividends on common shares are recognized as a liability and deducted from equity when
declared and approved by the BOD of the Parent Company. 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 Parent Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of assets embodying
economic benefits will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation. Where the Parent Company expects a provision to be reimbursed,
the reimbursement is recognized as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the parent company statement of
income, net of any reimbursement.
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Contingencies
Contingent liabilities are not recognized in the parent company financial statements. These are
disclosed unless the possibility of an outflow of resources embodying economic benefits is
remote. A contingent asset is not recognized in the parent company financial statements but
disclosed when an inflow of economic benefits is probable.
Events After the Reporting Period
Post year-end events that provide additional information about the Parent Company’s financial
position at the balance sheet date (adjusting events) are reflected in the parent company financial
statements. Post year-end events that are not adjusting events are disclosed in the notes to the
Parent Company’s financial statements when material.
Standards Issued but not yet Effective
The Parent Company will adopt the following standards and interpretations enumerated below
when these become effective. Except as otherwise indicated, the Parent Company does not expect
the adoption of these new and amended PFRS and Philippine Interpretations to have significant
impact on its financial statements.
Effective in 2011
PAS 24 (Amended), Related Party Disclosures
The amended standard, effective for annual periods beginning on or after February 1, 2010,
clarifies the definition of a related party to simplify the identification of such relationships and to
eliminate inconsistencies in its application.
PAS 32, Financial Instruments: Presentation (Amendment) - Classification of Rights Issues
The amendment to PAS 32 is effective for annual periods beginning on or after February 1, 2010.
It amends the definition of a financial liability classifying rights issues (and certain options or
warrants) as equity instruments in cases where such rights are given pro rata to all of the existing
owners of the same class of an entity’s non-derivative equity instruments, or to acquire a fixed
number of the entity’s own equity instruments for a fixed amount in any currency.
Philippine Interpretation IFRIC 14 (Amendment) - Prepayments of a Minimum Funding
Requirement
The amendment to Philippine Interpretation IFRIC 14 is effective for annual periods beginning on
or after January 1, 2011, with retrospective application. The amendment provides guidance on
assessing the recoverable amount of a net pension asset. The amendment permits an entity to treat
the prepayment of a minimum funding requirement as an asset.
Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments
Philippine Interpretation IFRIC 19 is effective for annual periods beginning on or after
July 1, 2010. The interpretation clarifies that equity instruments issued to a creditor to extinguish a
financial liability qualify as consideration paid. The equity instruments issued are measured at
their fair value. In case that this cannot be reliably measured, the instruments are measured at the
fair value of the liability extinguished. Any gain or loss is recognized immediately in profit or
loss.
*SGVMC116162*

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Improvements to PFRSs 2010
Improvements to IFRSs is an omnibus of amendments to PFRSs. The amendments have not been
adopted as they become effective for annual periods on or after either July 1, 2010 or
January 1, 2011. 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 Parent
Company.
• PFRS 3, Business Combinations
• PFRS 7, Financial Instruments: Disclosures
• PAS 1, Presentation of Financial Statements
• PAS 27, Consolidated and Separate Financial Statements
• Philippine Interpretation IFRIC 13, Customer Loyalty Programmes
PAS 12, Income Taxes (Amendment) - Deferred Tax: Recovery of Underlying Assets
The amendment to PAS 12 is effective for annual periods beginning on or after January 1, 2012.
It provides a practical solution to the problem of assessing whether recovery of an asset will be
through use or sale. It introduces a presumption that recovery of the carrying amount of an asset
will, normally, be through sale.
Effective in 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.
PFRS 7, Financial Instruments: Disclosures (Amendments) - Disclosures-Transfers of Financial
Assets
The amendments to PFRS 7 are effective for annual periods beginning on or after July 1, 2011.
The amendments will allow users of financial statements to improve their understanding of
transfer transactions of financial assets (for example, securitizations), including understanding the
possible effects of any risks that may remain with the entity that transferred the assets. The
amendments also require additional disclosures if a disproportionate amount of transfer
transactions are undertaken around the end of a reporting period.
Effective in 2013
PFRS 9, Financial Instruments: Classifications and Measurement
PFRS 9, as issued in 2010, reflects the first phase of the work on the replacement of PAS 39 and
applies to classification and measurement of financial assets and financial liabilities as defined in
PAS 39. In subsequent phases, hedge accounting and derecognition will be addressed. The
completion of this project is expected in early 2011.
The Parent Company will assess the impact of these amendments on financial its
position/performance when they become effective.
*SGVMC116162*

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3. Significant Accounting Judgments and Estimates
The preparation of the parent company financial statements in compliance with PFRS requires the
Parent Company to make judgments and estimates that affect the reported amounts of assets,
liabilities, income and expenses and disclosure of contingent assets and contingent liabilities.
Future events may occur which will cause the assumptions used in arriving at the estimates to
change. The effects of any change in estimates are reflected in the parent company financial
statements as they become reasonably determinable.
Judgments and estimates are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Judgments
a. Functional Currency
PAS 21 requires management to use its judgment to determine the entity’s functional currency
such that it most faithfully represents the economic effects of the underlying transactions,
events and conditions that are relevant to the entity. In making this judgment, the Parent
Company considers the following:
• the currency that mainly influences sales prices for financial instruments and services (this
will often be the currency in which sales prices for its financial instruments and services
are denominated and settled);
• the currency in which funds from financing activities are generated; and
• the currency in which receipts from operating activities are usually retained.
The Parent determined its functional currency to be Philippine peso, being the currency that
mainly influences the Parent Company’s revenues and cost and expenses.
b. Operating leases
Parent Company as lessee
The Parent Company has entered into commercial property leases as a lessee for its office
premises. The Parent Company has determined, 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 - ten years only), that all significant risks and rewards of
ownership of the properties it leases are not transferable to the Parent Company.
Parent Company as lessor
The Parent Company has entered into commercial property leases as lessor. The Parent
Company has determined, based on an evaluation of the terms and conditions of the
arrangements that it retains all the significant risks and rewards of ownership of these
properties and accounts for the contracts as operating leases.
c. Fair value of financial instruments
The fair values of financial instruments that are not quoted in active markets are determined
using valuation techniques. The carrying values of financial assets and financial liabilities of
the Parent Company approximate their market values since these are short-term in nature.
*SGVMC116162*

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d. Contingencies
The Parent Company is currently involved in various proceedings. The estimate of the
probable costs for the resolution of these claims has been developed in consultation with
outside counsel handling the defense in these matters and is based upon an analysis of
potential results. The Parent Company currently does not believe these proceedings will have
a material effect on the Parent Company’s financial position. It is possible, however, that
future results of operations could be materially affected by changes in the estimates or in the
effectiveness of the strategies relating to these proceedings (see Note 24).
e. Determination of whether the Parent Company is acting as a principal or an agent
The Parent Company assesses its revenue arrangements against the following criteria to
determine whether it is acting as a principal or an agent:
• whether the Parent Company has primary responsibility for providing the goods and
services;
• whether the Parent Company has inventory risk;
• whether the Parent Company has discretion in establishing prices; and
• whether the Parent Company bears the credit risk.
If the Parent Company has determined it is acting as a principal, revenue is recognized on a
gross basis with the amount remitted to the other party being accounted for as part of costs and
expenses.
If the Parent Company has determined it is acting as an agent, only the net amount retained is
recognized as revenue.
The Parent Company assessed its revenue arrangements and concluded that it is acting as
principal in some arrangements and as an agent in other arrangements.
f. Going concern
The Parent Company’s management has made an assessment of the Parent Company’s ability
to continue as a going concern and is satisfied that the Parent Company has the resources to
continue in business for the foreseeable future. Furthermore, management is not aware of any
material uncertainties that may cast significant doubt upon the Parent Company’s ability to
continue as a going concern. Therefore, the parent company financial statements continue to
be prepared on the going concern basis.
Estimates
a. Credit losses on receivables
The Parent Company reviews its receivables at each balance sheet date to assess whether an
allowance for credit losses should be recorded in the parent company balance sheet. In
particular, judgment by management is required in the estimation of the amount and timing of
future cash flows when determining the level of allowance required. Such estimates are based
on assumptions about a number of factors such as length of the Parent Company’s relationship
with counterparties (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.
*SGVMC116162*

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As of December 31, 2010, accounts receivable and other receivables are carried in the parent
company balance sheet at P=1.12 billion and P=0.16 billion, respectively. As of
December 31, 2009, accounts receivable and other receivables are carried in the balance sheet
at P=1.18 billion and P=0.13 billion, respectively. No allowance for credit losses on the
outstanding balances of receivables have been recorded since the Parent Company has
assessed that there was no objective evidence of impairment as of December 31, 2010 and
2009.
b. Impairment of nonfinancial assets
(i) Investments in subsidiaries and associates
The Parent Company assesses impairment on its investments in subsidiaries and associates
whenever events or changes in circumstances indicate that the carrying amount of the
assets may not be recoverable. Among others, the factors that the Parent Company
considers important, which could trigger an impairment review on its investments in
subsidiaries and associates, include the following:
• deteriorating or poor financial condition;
• recurring net losses; and
• significant changes with an adverse effect on the subsidiary/associate have taken place
during the period, or will take place in the near future, in the technological, market,
economic, or legal environment in which the subsidiary/associate operates.
(ii) Property and equipment and software costs
The Parent Company assesses impairment on property and equipment and software costs
whenever events or changes in circumstances indicate that the carrying amount of the asset
may not be recoverable. The factors that the Parent Company considers important, which
could trigger an impairment review, include the following:
• significant underperformance relative to expected historical or projected future
operating results;
• significant changes in the manner of use of the acquired assets or the strategy for
overall business; and
• significant negative industry or economic trends.
The Parent Company recognizes an impairment loss whenever the carrying amount of the
asset exceeds its recoverable amount. The recoverable amount is determined based on the
asset’s value in use computation, which considers the present value of estimated future cash
flows expected to be generated from the continued use of the asset.
As of December 31, 2010 and 2009, no impairment losses were recognized on the Parent
Company’s nonfinancial assets. The carrying values of the Parent Company’s nonfinancial
assets as of December 31 follow:
2010 2009
Investments in subsidiaries and associates (Note 10) P=245,149,252 P=245,149,252
Property and equipment - net(Note 11) 9,493,115 11,761,787
Software costs - net (Note 12) 1,868,072 2,704,684
*SGVMC116162*

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c. Estimated useful lives of property and equipment and software costs
The Parent Company reviews the estimated useful lives of property and equipment and
software costs annually based on the expected asset utilization after considering the expected
future technological developments and market behavior. Significant changes in these estimates
resulting from changes in the factors aforementioned could possibly affect the future results of
operations. Any decrease in the estimated useful life of the property and equipment and
software costs would decrease their respective balances and increase the recorded depreciation
and amortization.
As of December 31, the carrying values of Property and equipment and Software costs follow:
2010 2009
Property and equipment - net (Note 11) P=9,493,115 P=11,761,787
Software costs - net (Note 12) 1,868,072 2,704,684
d. Recognition of deferred tax assets
The Parent Company reviews the carrying amounts of deferred tax assets at each balance sheet
date and reduces it to the extent that it is no longer probable that sufficient taxable income will
be available to allow all or part of the deferred tax assets to be utilized. Significant judgment
is required to determine the amount of deferred tax assets that can be recognized, based upon
the likely timing and level of future taxable income together with future tax planning
strategies.
As of December 31, 2010 and 2009, the Parent Company did not recognize net deferred tax
assets on existing deductible temporary differences amounting to P=2.85 million and
P=5.05 million, respectively. Management believes that it is not highly probable that these
temporary differences will be realized in the future (see Note 23).
e. Present value of net retirement obligation
The cost of defined benefit retirement plan and other post employment benefits are determined
using actuarial valuations. The actuarial valuation involves making assumptions about
discount rates, expected rates of return on assets, future salary increases, mortality rates and
future retirement increases. Due to the long-term nature of these benefits, such estimates are
subject to significant uncertainty.
The assumed discount rates were determined using the market yields on Philippine
government bonds with terms consistent with the expected employee benefit payout as of the
consolidated balance sheet date. Refer to Note 16 for the details of assumptions used in the
calculation. As of December 31, 2010 and 2009, the present value of the net retirement
obligation of the Parent Company amounted to P=0.78 million and P=3.63 million, respectively
(see Note 16).
f. Share-based payment transactions
The Parent Company 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 Parent Company estimates the number
of equity instruments that will ultimately vest. The Parent Company recognized cost of
equity-settled share based payments amounting to P=1.53 million and P=2.16 million 2009 and
2008, respectively (see Note 17). The vesting period of the stock purchase program ended on
September 19, 2009.
*SGVMC116162*

4. Fair Value Measurement
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The following tables summarize the carrying amounts and fair values of the Parent Company’s
financial assets and financial liabilities:
2010 2009
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
Loans and receivables:
Cash and cash equivalent P=727,665,919 P=727,665,919 P=694,662,397 P=694,662,397
Accounts receivable
Other receivables:
1,115,685,946 1,115,685,946 1,177,175,491 1,177,175,491
Related parties 78,581,573 78,581,573 32,043,965 32,043,965
Minority shareholders 39,981,243 39,981,243 16,520,681 16,520,681
Dividend – – 23,296,068 23,296,068
Others 23,394,429 23,394,429 43,527,627 43,527,627
Refundable deposits 4,099,931 4,099,931 3,601,557 3,601,557
Total P=1,989,409,041 P=1,989,409,041 P=1,990,827,786 P=1,990,827,786
Other Financial Liabilities
Beneficiaries and other payables:
Beneficiaries P=144,960,550 P=144,960,550 147,449,679 147,449,679
Advances from related parties 74,161,090 74,161,090 501,577 501,577
Agents, couriers and trading clients 27,101,817 27,101,817 46,987,240 46,987,240
Accrued expenses 6,250,462 6,250,462 6,996,450 6,996,450
Payable to suppliers 2,958,634 2,958,634 2,243,487 2,243,487
Others 803,350 803,350 7,987,973 7,987,973
Interest-bearing loans 877,000,000 877,000,000 930,000,000 930,000,000
Total P=1,133,235,903 P=1,133,235,903 P=1,142,166,406 P=1,142,166,406
The following methods and assumptions were used to estimate the fair value of the financial
instruments:
Cash and cash equivalents, Accounts receivable, Other receivables, Beneficiaries and other
payables and Interest-bearing loans - carrying amounts approximate fair values due to the
relatively short-term maturities of these instruments.
Refundable deposits - carrying amounts are deemed to approximate fair values since the fair value
of certain deposits cannot be reasonably and reliably estimated.
As of December 31 2010 and 2009, the Parent Company has no financial instruments carried at
fair value.
5. Financial Risk Management Objectives and Policies
The Parent Company’s principal financial instruments mainly comprise of short-term loans from
banks. The main purpose of these financial instruments is to raise funds for the Parent Company’s
fulfillment or delivery of remittance transactions to beneficiaries. The Parent Company also has
various other financial assets and liabilities such as cash and cash equivalents, accounts receivable
and accounts payable to beneficiaries, which arise directly from its remittance operations.
The main risks arising from the Parent Company’s financial instruments are credit risk, foreign
currency risk, cash flow interest rate risk, and liquidity risk. The BOD reviews and approves
policies for managing each of these risks and these are summarized below:
*SGVMC116162*

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Credit Risk
Credit risk is the risk of loss resulting from the failure of a borrower or counterparty to perform its
obligations during the life of the transaction. This includes risk of non-payment by borrowers or
issuers, failed settlement of transactions and default on contracts.
The nature of its business exposes the Parent Company to potential risk from difficulties in
recovering transaction money from foreign partners. Receivables from foreign offices and agents
arise as a result of its remittance operations in various regions of the globe. In order to address
this, the Parent Company has maintained the following credit policies: (a) implement a contract
that incorporates a bond and advance payment cover such that the full amount of the transaction
will be credited to the Parent Company prior to their delivery to the beneficiaries, which applies
generally to all new agents and in certain cases to old agents; (b) all foreign offices and agents
must settle their accounts 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 Parent Company of the
financial soundness of their partner firms; and (d) receivable balances are monitored daily by the
regional managers with the result that the Parent Company’s exposure to bad debts is not
significant.
The Parent Company’s receivables from agents and courier companies are highly collectible and
have a turnover ranging from 1 to 5 days and 30 to 60 days, respectively. The other receivables,
which include advances to related parties, are also highly collectible and are due in less than one
year.
The table below shows the maximum credit exposure of the Parent Company per account
classification as of December 31, 2010 and 2009 (see Notes 6, 7, 8 and 12):
2010 2009
Loans and receivables:
Cash and cash equivalents* P=685,920,368 P=652,582,294
Accounts receivable
Other receivables:
1,115,685,946 1,177,175,491
Related parties 78,581,573 32,043,965
Minority shareholders 39,981,243 16,520,681
Dividend – 23,296,068
Others
Other noncurrent assets:
23,394,429 43,527,627
Refundable deposits 4,099,931 3,601,557
Total
* excludes cash on hand
P=1,947,663,490 P=1,948,747,683
The table below shows the maximum credit exposure of the Parent Company per geographical
classification as of December 31, 2010 and 2009:
2010 2009
Asia Pacific P=1,742,386,664 P=1,601,347,252
Middle East 98,796,778 68,374,703
North America 54,214,381 206,577,577
Europe 52,265,667 72,448,151
Total P=1,947,663,490 P=1,948,747,683
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There are no past due receivables as of December 31, 2010 and 2009. The Parent Company
classifies its receivables as high grade. High grade financial assets with credit ratings of excellent,
strong, good, or satisfactory, wherein the borrower has low probability of default and could
withstand the normal business cycle.
Foreign Currency Risk
Foreign currency risk is the risk to earnings or capital arising from changes in foreign exchange
rates. It is the Parent Company’s policy that all daily foreign currencies, which arise as a result of
its remittance transactions, must be traded daily with bank partners only at prevailing foreign
exchange rates in the market. The daily closing foreign exchange rates shall be the guiding rate in
providing wholesale rates and retail rates to foreign offices and agents, respectively. The trading
proceeds will be used to pay out bank loans and other obligations of the Parent Company.
The tables below summarize the Parent Company’s exposure to foreign exchange risk. Included
in the tables are the Parent Company’s foreign currency-denominated monetary assets and
liabilities and their PHP equivalent.
Cash and Cash
Equivalents Receivables Total
2010 2009
Php
Equivalent
Cash and Cash
Equivalents Receivables Total
PHP
Equivalent
Currency
CAD 139,422 3,312,925 3,452,347 P=151,305,487 20 4,372,293 4,372,313 P=193,799,626
USD 1,026,855 901,651 1,928,506 84,545,703 1,218,815 1,311,537 2,530,352 116,902,262
EUR 321,739 515,999 837,738 48,567,036 13,298 203,192 216,490 14,383,643
SGD 89,587 1,254,112 1,343,699 45,565,156 5,654 1,443,109 1,448,763 47,642,803
AUD 184,346 783,071 967,417 43,141,040 1 1,903,567 1,903,568 78,051,047
NTD – 23,731,378 23,731,378 35,581,120 – 51,271,915 51,271,915 73,431,637
HKD – 1,553,760 1,553,760 8,753,014 – 1,780,852 1,780,852 10,605,294
NZD 7,518 212,371 219,889 7,364,909 – 298,940 298,940 9,778,208
GBP 14,752 – 14,752 1,002,493 14,752 721,629 736,381 54,446,892
QAR 275 – 275 3,312 – – – –
Net exposure P=425,829,270 P=599,041,412
The following tables set forth for the year indicated the impact of reasonably possible changes in
the rates of other currencies on pretax income.
2010
Change in
Change in
nominal
nominal
foreign currency Effect on foreign currency Effect on
Currency
exchange rate pretax income exchange rate pretax income
EUR +8.87 P=7,430,736 -3.04 (P=2,546,724)
USD +3.55 6,846,196 -1.61 (3,104,895)
CAD +1.75 6,041,607 -2.09 (7,215,405)
HKD +0.41 637,042 -0.08 (124,301)
SGD +0.32 429,984 -1.87 (2,512,717)
NTD +0.01 237,314 -0.12 (2,847,765)
NZD +1.03 226,486 -3.09 (679,457)
AUD +0.13 125,764 -7.05 (6,820,290)
GBP +8.01 118,164 -3.57 (52,665)
QAR +1.73 476 -4.08 (1,122)
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Change in nominal
2009
Change in nominal
foreign currency Effect on foreign currency Effect on
Currency
exchange rate pretax income exchange rate pretax income
EUR +4.75 P=1,028,328 -7.32 (P=1,584,707)
USD +3.00 7,591,056 -0.33 (835,016)
CAD +1.36 5,946,346 -7.19 (31,436,930)
HKD +0.78 1,389,065 -0.97 (1,727,426)
SGD +1.38 1,999,293 -2.19 (3,172,791)
NTD +1.73 88,700,413 -4.08 (209,189,413)
NZD +1.73 517,166 -4.08 (1,219,675)
AUD +3.51 6,681,524 -11.67 (22,214,639)
GBP +7.52 5,537,585 -11.25 (8,284,286)
There is no other impact on the Parent Company’s equity other than those already affecting the
profit or loss.
Cash Flow Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash
flows of financial instruments.
As of December 31, 2010 and 2009, the Parent Company’s exposure to cash flow interest rate risk
is minimal. The Parent Company’s policy is to manage its interest cost by entering only into fixed
rate short-term loans from banks.
Liquidity Risk
Liquidity or funding risk is the risk that an entity will encounter difficulty in raising funds to meet
commitments associated with financial instruments.
The Parent Company’s objective is to maintain a balance between continuity of funding and
flexibility through the use of short-term debts. In addition, the Parent Company maintains credit
facilities with local banks. As of December 31, 2010 and 2009, the Parent Company has unused
credit facilities amounting to P=1.02 billion and P=0.60 billion, respectively (see Note 14).
Financial assets
Maturity profile of financial assets held for liquidity purposes is shown below. The analysis is
based on the remaining period from the end of the reporting period to the contractual maturity
date, or if earlier, the expected date the assets will be realized.
Financial liabilities
The maturity grouping is based on the remaining period from the end of the reporting period to the
contractual maturity date. When a counterparty has a choice of when the amount is paid, the
liability is allocated to the earliest period in which the Group can be required to pay.
*SGVMC116162*

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The tables below summarize the maturity profile of the Parent Company’s financial instruments
based on undiscounted contractual payments.
Less than 5 days
2010
5 to 30 days 30 to 60 days Total
Financial assets
Cash and cash equivalents P=727,665,919 P=– P=– P=727,665,919
Accounts receivable 1,115,685,946 – – 1,115,685,946
P=1,843,351,865 P=– P=– P=1,843,351,865
Financial liabilities
Beneficiaries and other
payables:
Beneficiaries P=144,960,550 P=– P=– P=144,960,550
Advances from related
parties – – 74,161,090 74,161,090
Agents, couriers and
trading clients 27,101,817 – – 27,101,817
Accrued expenses – – 6,250,462 6,250,462
Payable to suppliers – – 2,958,634 2,958,634
Others – – 803,350 803,350
Interest-bearing loans 395,273,055 483,077,528 – 878,350,583
P=567,335,422 P=483,077,528 P=84,173,536 P=1,134,586,486
Less than 5 days
2009
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
Accounts receivable 1,177,175,491 – – 1,177,175,491
P=1,821,535,732 P=50,326,462 P=– P=1,871,862,194
Financial liabilities
Beneficiaries and other
payables:
Beneficiaries
Advances from related
P=147,449,679 P=– P=– P=147,449,679
parties
Agents, couriers and
– – 501,577 501,577
trading clients 46,987,240 – – 46,987,240
Accrued expenses – – 6,996,450 6,996,450
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
6. Cash and Cash Equivalents
This account consists of:
2010 2009
Cash on hand P=41,745,551 P=42,080,103
Cash in banks (Note 22) 685,920,368 602,280,138
Short-term deposits – 50,302,156
P=727,665,919 P=694,662,397
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Cash in banks earn interest at the respective bank deposit rates. Short-term deposits are made for
varying periods of up to three months and earn interest at the respective short-term deposit rates.
In 2010, 2009 and 2008, interest income included in ‘Other income’ amounted to P=3.22 million,
P=7.67 million and P=5.26 million, respectively (see Note 21).
The Parent Company’s cash and cash equivalents denominated in foreign currency, with
corresponding Philippine peso (PHP) equivalent, are as follows:
December 31, 2010 December 31, 2009
Amount PHP equivalent Amount PHP equivalent
USD 1,026,855 P=45,017,323 1,218,815 P=56,309,253
EUR 321,739 18,652,502 13,298 883,522
AUD 184,346 8,220,734 1 41
CAD 139,422 6,110,427 20 886
SGD 89,587 3,037,917 5,654 185,933
GBP 14,752 1,002,493 14,752 1,077,432
NZD 7,518 251,806 – –
QAR 275 3,312 – –
P=82,296,514 P=58,457,067
Cash in banks earn interest rates ranging as follows:
2010 2009 2008
PHP 1.00% to 2.00% 1.00% to 2.00% 1.00% to 2.00%
Foreign Currency Denominated 1.00% to 2.00% 1.00% to 2.00% 1.00% to 2.00%
7. Accounts Receivable
Accounts receivable pertains mainly to the Parent Company’s receivables from agents and
couriers. Receivables from agents pertain to advances made to fund the remittance transactions to
beneficiaries. These are settled within 1 to 5 days from transaction date. Receivables from
couriers pertain to advances made to courier companies to ease up the door-to-door delivery of the
remittances to the beneficiaries. These are settled within 30 to 60 days from transaction date.
8. Other Receivables
This account consists of:
2010 2009
Related parties (Note 22) P=78,581,573 P=32,043,965
Minority shareholders 39,981,243 16,520,681
Bureau of Internal Revenue (BIR) 13,160,535 13,160,535
Dividend – 23,296,068
Others 23,394,429 43,527,627
P=155,117,780 P=128,548,876
Receivable from the BIR pertains to the excess payments made by the Parent Company in 2007
for the Initial Public Offering (IPO) percentage tax. As of December 31, 2010, the case is pending
resolution with the Court of Tax Appeals. The Parent Company believes that it will be able to
obtain the refund from the BIR.
*SGVMC116162*

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Receivable from the minority shareholders pertains to the Parent Company’s advances to the
minority shareholders of IERCAG (see Note 10) and WEPL.
‘Others’ includes 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:
2010 2009
Visa cards inventory P=8,054,220 P=9,308,037
Prepaid expenses 1,895,811 3,929,033
Office supplies 199,689 443,118
P=10,149,720 P=13,680,188
Prepaid expenses include prepayments for interest, rent, association dues and advertisements.
10. Investments in Subsidiaries and Associates
As of December 31, 2010 and 2009, the Parent Company’s investments in subsidiaries and
associates consist of the following:
Amounts
Subsidiaries:
IERCAG P=78,200,341
IGRL 71,200,000
LSML 42,554,665
IRCL 13,444,000
WEPL 9,033,072
IAPL 8,552,000
PSAGL 5,958,800
INZL
Associates:
32,400
ISPL 12,600,000
HKHCL 3,573,974
P=245,149,252
Establishment of subsidiaries
IERCAG
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.
*SGVMC116162*

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On December 21, 2009, the shareholders of IERCAG made a non-refundable shareholders’
contribution amounting to EUR 1.50 million (P=99.66 million) to the entity to strengthen its equity.
The additional investments were taken from the outstanding receivables of the Parent Company
from IERCAG amounting to P=91.16 million and were recognized by the latter as capital reserves
to wipe out its accumulated deficit amounting to GBP 0.56 million (P=52.41 million). As a result
of the application of receivables, the Parent Company recognized a receivable amounting to
P=16.52 million from the minority shareholder. The remaining P=8.49 million was recognized as a
receivable from the minority shareholder in the separate financial statements of IERCAG. On
September 28, 2010, the Parent Company advanced the P=8.49 million to IERCAG as payment of
the receivable from the minority shareholder. This resulted to the increase in the Parent
Company’s receivable by P=8.49 million (see Note 8). The existing ownership ratio of 74.90% and
25.10% was maintained after the additional contribution was made.
INZL
On August 17, 2007, the Parent Company’s BOD approved the incorporation of INZL as a stock
corporation to be organized and registered in New Zealand. Accordingly, the Parent Company
made an investment of NZD 1,000 (P=32,400). INZL started commercial operation on
February 13, 2008.
Acquisition of subsidiaries
IGRL and IAPL
On June 2, 2007, the Parent Company’s BOD approved the acquisition of 100.00% ownership
interest in both IGRL and IAPL for a consideration of P=71.20 million and P=8.55 million,
respectively. IGRL and IAPL are based in United Kingdom and Australia, respectively. These
two entities, which are in the remittance business, have the same operations as the Parent
Company. Accordingly, on June 29, 2007, the Parent Company acquired 100.00% ownership
interest in IGRL and IAPL through the execution of deeds of assignment by the previous
stockholders (who are also the stockholders of the Parent Company) of the two entities. Under the
deeds of assignment, the existing advances by the Parent Company to certain stockholders were
applied as payment for the purchase of IGRL and IAPL.
WEPL
On June 2, 2007, the Parent Company’s BOD also approved the acquisition of 20.00% ownership
interest in WEPL for a consideration of P=5.60 million. WEPL was incorporated and is based in
Australia, and has the same operations as the Parent Company. Accordingly, on June 29, 2007,
the Parent Company acquired 20.00% ownership interest in WEPL through the execution of a
deed of assignment by the previous stockholders (who are also stockholders of the Parent
Company) of the entity. Under the deed of assignment, the existing advances of the Parent
Company to certain stockholders were applied as payment for the purchase of WEPL. On
September 4, 2007, an additional 15.00% ownership interest in WEPL was acquired by the Parent
Company for a consideration of P=3.43 million.
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.
IRCL
On October 1, 2004, the Parent Company’s BOD approved the acquisition of 65.00% of IRCL for
a consideration of P=10.34 million. IRCL was incorporated on July 16, 2001 and is based in
Canada and has the same operations as the Parent Company. On July 26, 2006, the additional
30.00% ownership interest from a minority stockholder in IRCL was transferred to the Parent
Company at no additional cost.
*SGVMC116162*

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On June 2, 2007, the Parent Company’s BOD approved the acquisition of 5.00% ownership
interest from minority stockholder for a consideration P=3.10 million taking its ownership in IRCL
to 100.00%. Accordingly on June 29, 2007, IRCL minority stockholder executed a deed of
assignment to transfer the ownership interest to the Parent Company. Under the deed of
assignment, the existing advances by the Parent Company to certain stockholder were applied as
payment for the purchase of IRCL.
PSAGL
On November 28, 2008, the Parent Company’s BOD ratified the acquisition of 100.00%
ownership interest in PSAGL for a consideration of P=5.96 million. PSAGL is based in Hong
Kong and was incorporated on April 28, 2008 to engage in foreign currencies trading services.
LSML
LSML was incorporated on March 16, 2001 and is based in Hong Kong and has the same
operations as the Parent Company. On April 2001, the Parent Company’s BOD approved the
acquisition of 51.00% ownership interest in LSML for a consideration of P=17.85 million. On
June 2, 2007, the Parent Company’s BOD approved the acquisition of the 49.00% ownership
interest in LSML from its minority stockholders for a consideration of P=24.70 million.
Accordingly on June 29, 2007, the minority stockholder of LSML (who is also a stockholder of
the Parent Company) executed deed of assignment to transfer its ownership interest to the Parent
Company. Under the deeds of assignment, the existing advances by the Parent Company to
certain stockholder were applied as payment for the purchase of LSML.
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 NTD 2.45 million (P=3.57 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.
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 entity.
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.
*SGVMC116162*

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The following tables present the summarized financial information of the Parent Company’s
subsidiaries and associates as of and for the years ended December 31, 2010 and 2009:
2010
Balance Sheets Statements of Income
Total Total
Gross Net Income
Assets Liabilities Revenue
(In thousands)
Income (Loss)
Subsidiaries:
PAGL P=193,141 P=1,722 P=62,610 P=62,413 P=63,271
IERCAG 68,553 70,507 13,400 11,711 (46,642)
IRCL 62,144 40,718 109,058 97,525 666
LSML 24,435 14,722 25,562 25,553 6,107
WEPL 21,785 17,111 30,546 29,226 200
IGRL 16,662 13,645 55,240 43,769 1,019
INZL 11,870 18,025 9,618 8,798 (1,129)
IAPL 5,600 1,526 628 308 29
Associates:
404,190 177,976 306,662 279,303 23,521
HKHCL 69,159 53,006 65,648 22,037 5,996
ISPL 61,209 40,638 56,130 33,198 4,754
P=534,558 P=271,620 P=428,440 P=334,538 P=34,271
2009
Balance Sheets Statements of Income
Total Total
Gross Net Income
Assets Liabilities Revenue
(In thousands)
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
*SGVMC116162*

11. Property and Equipment - net
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The composition of and movements in this account follow:
Office and
Communication
Equipment
Transportation
and Delivery
Equipment
2010
Furniture
and Fixtures
Leasehold
Improvements Total
Cost
Balance at beginning of year P=22,623,757 P=5,920,959 P=3,692,945 P=11,762,843 P=44,000,504
Additions 2,621,930 3,116,461 177,934 32,500 5,948,825
Disposals (195,500) (2,202,818) (91,412) – (2,489,730)
Balance at end of year 25,050,187 6,834,602 3,779,467 11,795,343 47,459,599
Accumulated Depreciation and
Amortization
Balance at beginning of year 18,066,791 2,350,632 2,594,128 9,227,166 32,238,717
Depreciation and amortization 3,521,442 1,303,027 415,880 1,310,452 6,550,801
Disposals (88,344) (708,790) (25,900) – (823,034)
Balance at end of year 21,499,889 2,944,869 2,984,108 10,537,618 37,966,484
Net Book Value at End of Year P=3,550,298 P=3,889,733 P=795,359 P=1,257,725 P=9,493,115
Office and
Communication
Equipment
Transportation
and Delivery
Equipment
2009
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
As of December 31, 2010 and 2009, the cost of fully depreciated property and equipment still in
use by the Parent Company amounted to P=22.64 million and P=18.28 million, respectively.
Details of depreciation and amortization follow:
2010 2009 2008
Property and equipment P=6,550,801 P=6,948,635 P=6,078,228
Software cost (Note 12) 1,507,900 1,665,896 1,482,668
P=8,058,701 P=8,614,531 P=7,560,896
*SGVMC116162*

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12. Software Costs - net and Other Noncurrent Assets
Movements in software costs follow:
2010 2009
Cost
Balance at beginning of year P=11,425,409 P=9,247,962
Additions 671,288 2,177,447
Balance at end of year
Accumulated Amortization
12,096,697 11,425,409
Balance at beginning of year 8,720,725 7,054,829
Amortization (Note 11) 1,507,900 1,665,896
Balance at end of year 10,228,625 8,720,725
Net Book Value at end of year P=1,868,072 P=2,704,684
Other noncurrent assets consist of:
2010 2009
Input VAT P=28,493,804 P=27,821,193
Refundable deposits 4,099,931 3,601,557
Deferred input VAT 350,550 375,043
Others 44,000 44,000
P=32,988,285 P=31,841,793
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 deposits made by the Parent Company in relation to
rental lease agreements for its office spaces.
13. Beneficiaries and Other Payables
This account consists of:
2010 2009
Beneficiaries P=144,960,550 P=147,449,679
Advances from related parties (Note 22) 74,161,090 501,577
Agents, couriers and trading clients 27,101,817 46,987,240
Accrued expenses 6,250,462 6,996,450
Payable to suppliers 2,958,634 2,243,487
Withholding tax payable 814,996 1,109,836
Payable to government agency 7,754 472,972
Others 803,350 7,987,973
P=257,058,653 P=213,749,214
Payables to beneficiaries, agents, couriers and trading clients are noninterest-bearing and are
normally settled within 1 to 30 days.
*SGVMC116162*

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Accrued expenses include accruals for various operating expenses such as vacation and sick leave
benefits, courier charges, training and development, professional fees and utilities.
14. Interest-Bearing Loans
This account pertains to the Parent Company’s unsecured, short-term interest-bearing pesodenominated
bank loans.
As of December 31, 2010 and 2009, the outstanding loans payable of the Parent Company
amounted to P=877.00 million and P=930.00 million, respectively.
In 2010, 2009 and 2008, these loans bear annual interest rates ranging from 5.50% to 6.00%,
7.00% to 8.00% and 8.75% to 13.00%, respectively. In 2010, 2009 and 2008, the Parent
Company recognized interest expense of P=29.21 million, P=48.68 million and P=13.25 million,
respectively.
The Parent Company has an unused credit facility with various banks amounting to P=1.02 billion
and P=0.60 billion as of December 31, 2010 and 2009, respectively.
The loans outstanding as of December 31, 2010 were subsequently paid on various dates in
January and February 2011.
15. Equity
Capital Stock
As of December 31, 2010 and 2009, the Parent Company’s capital stock consists of:
Number of
Shares Amount
Common stock
Authorized - P=1 par value per share
Issued:
1,000,000,000 P=1,000,000,000
Balance at beginning and end of year 562,417,000 P=562,417,000
Less treasury stock (9,329,000) (40,115,150)
Issued and outstanding 553,088,000 P=522,301,850
Dividends
On March 19, 2010, the BOD of the Parent Company declared cash dividends amounting to
P=26.60 million or P=0.0481 per share, payable to shareholders-of-record as of April 8, 2010.
The declaration was subsequently ratified and confirmed by the Parent Company’ shareholders
during their annual meeting held on July 23, 2010. The payment was made on May 5, 2010.
On March 23, 2009, the BOD of the Parent Company declared cash dividends amounting to
P=26.01 million or P=0.0471 per share, payable to shareholders-of-record as of April 7, 2009.
The declaration was subsequently ratified and confirmed by the Parent Company’ shareholders
during their annual meeting held on July 17, 2009. The payment of dividends was made on
May 6, 2009.
*SGVMC116162*

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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.
The 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.
Treasury Stock
On August 15, 2008, the Parent Company’s BOD approved the Buy-back Program to acquire up
to ten million (10,000,000) of its shares, representing approximately 1.87% of the Parent
Company’s total outstanding common shares, from the market. The Parent Company purchased
9,329,000 shares (P=40.12 million) in 2008 under the Buy-back Program and the same number of
shares is outstanding as of December 31, 2010 and 2009.
In 2009 and 2008, the Parent Company purchased 130,900 shares (P=0.13 million) and
548,500 shares (P=0.55 million), respectively, under the SSPP. The 808,100 shares (including
128,700 shares purchased in 2007) purchased under the SSPP, were subsequently transferred on
September 2009 to the retirement fund of the Parent Company (see Note 17).
Capital Management
The Parent Company’s capital is composed of its equity, which amounts to P=1.16 billion and
P=1.15 billion as of December 31, 2010 and 2009, respectively.
The Parent Company’s capital management activities seek to ensure that it maintains a healthy
capital ratio in order to support its businesses and maximize shareholder value by optimizing the
level and mix of its capital resources. Decisions on the allocation of capital resources are being
performed as part of the strategic planning review.
The Parent Company manages its capital structure and makes adjustments to it, in light of changes
in economic conditions. To maintain or adjust the capital structure, the Parent Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
No changes were made in the objectives, policies or processes during the years ended
December 31, 2010 and 2009.
The Parent Company’s objective is to ensure that there are no known events that may trigger direct
or contingent financial obligation that is material to the Company, including default or
acceleration of an obligation.
The Parent Company is not subject to externally imposed capital requirements.
16. Retirement Plan
The Parent Company has a noncontributory defined benefit retirement plan covering substantially
all of its regular employees. Under this retirement plan, all qualified employees are entitled to
cash benefits after satisfying age and service requirements.
Provisions for pension obligations are established for benefits payable in the form of retirement
pensions. Benefits are dependent on years of service and the respective employee’s latest monthly
salary.
*SGVMC116162*

- 33 -
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, 2010.
The principal actuarial assumptions used in determining the retirement liability of the Parent
Company as of January 1, 2010 and 2009 are as follows:
2010 2009
Discount rate 11.25% 15.20%
Future salary increases 9.00% 5.00%
Expected return on plan assets 6.00% 5.00%
Average remaining working life (in years) 31.8 31.0
The discount rates used to arrive at the present value of the obligation as of December 31, 2010
and 2009 are 9.69% and 11.25%, respectively.
The amounts recognized in the parent company balance sheets follow:
2010 2009
Present value of obligation 21,847,360 P=10,080,515
Fair value of plan assets 15,196,930 12,421,022
Deficit (surplus) 6,650,430 (2,340,507)
Unrecognized amortization:
Actuarial (loss) gain (5,872,169) 5,972,130
Retirement liability P=778,261 P=3,631,623
The movements in the fair value of plan assets in 2010 and 2009 are as follows:
2010 2009
Balance at beginning of year P=12,421,022 P=3,168,050
Contributions 5,229,490 4,800,000
Expected return on plan assets 738,073 –
Benefits paid from plan assets (548,626) –
Actuarial (loss) gain (2,643,029) 4,452,972
Balance at end of year P=15,196,930 P=12,421,022
The actual return on the plan assets of the Parent Company in 2010 and 2009 amounted to a loss
of P=1.90 million and a gain of P=4.45 million, respectively.
The movements in the present value of obligation are as follows:
2010 2009
Balance at beginning of year P=10,080,516 P=6,574,511
Current service cost 2,143,246 1,819,273
Interest cost 1,134,058 999,326
Benefits paid from plan assets (548,626) –
Actuarial loss 9,038,166 687,406
Balance at end of year P=21,847,360 P=10,080,516
*SGVMC116162*

- 34 -
The amounts of retirement expense included in ‘Salaries, wages and employee benefits’ in the
parent company statements of income are as follows:
2010 2009 2008
Current service cost P=2,143,246 P=1,819,273 P=1,988,492
Interest cost 1,134,058 999,326 788,666
Expected return on plan assets (738,073) – –
Actuarial (gains) loss recognized (163,104) (53,418) 32,268
Amortization of transitional liability – 252,228 252,227
P=2,376,127 P=3,017,409 P=3,061,653
The movements in the ‘Retirement liability’ recognized in the parent company balance sheets are
as follows:
2010 2009
Balance at beginning of year P=3,631,624 P=5,414,214
Retirement expense 2,376,127 3,017,409
Contributions (5,229,490) (4,800,000)
Balance at end of year P=778,261 P=3,631,623
Movements in the unrecognized actuarial (gains) losses are as follows:
2010 2009
Balance at beginning of year (P=5,972,130) (P=2,259,982)
Actuarial loss (gain) during the year 11,681,195 (3,765,566)
Actuarial gain recognized 163,104 53,418
Balance at end of year P=5,872,169 (P=5,972,130)
The major categories of plan assets follow:
2010 2009
Private equity securities* P=10,249,745 P=5,091,030
Government debt securities 2,760,719 1,764,648
Deposits in banks 2,047,387 4,843,861
Due from BSP – 700,000
Interest receivable 162,126 32,842
Trust fee payable (23,047) (11,359)
P=15,196,930 P=12,421,022
*This includes P=0.81 million of the Parent Company’s own equity securities bought under SSPP (see Note 17).
The amounts of experience adjustments relating to the plan liabilities of the Parent Company
follow:
2010 2009 2008 2007
Present value of obligation P=21,847,360 P=10,080,516 P=6,574,511 P=7,770,113
Fair value of plan assets 15,196,930 12,421,022 3,168,050 –
Deficit (surplus) 6,650,430 (2,340,506) 3,406,461 7,770,113
Changes in actuarial assumptions 9,932,542 1,070,082 (3,766,312) (9,785,892)
Experience adjustments on plan
liabilities (894,376) (382,676) (206,448) 4,176,250
Experience adjustments on plan assets (2,643,029) 4,452,972 – –
*SGVMC116162*

17. Special Stock Purchase Program (SSPP)
- 35 -
On July 20, 2007, the Parent Company’s BOD approved the proposal to set up an SSPP totaling
15,000,000 shares for the employees of the Parent Company who have been in the service for at
least one (1) calendar year as of June 30, 2007, as well as its BOD members, resource persons and
consultants (collectively referred to as “the Participants”). A Notice of Exemption under
Section 10.2 of the Securities Regulations Code had been approved by the SEC on
September 13, 2007. Notwithstanding the aforesaid confirmation by the SEC of the exempt
status of the SSPP shares, the SEC nonetheless required the Parent Company to include the SSPP
shares among the shares of the Parent Company which were registered with the SEC prior to the
conduct of its Initial Public Offering in October 2007. The registration of the Parent Company
shares, together with the SSPP shares, was rendered effective on October 5, 2007.
All 15,000,000 shares were exercised. The shares subject to the SSPP were sold at par value or
P=1.00 per share. Total shares amounting to P=11.74 million were paid in full, while the difference
totaling P=3.26 million were paid by way of salary loan. Shares acquired through SSPP are subject
to a lock-up period of 2 years from date of issue, which ended on September 19, 2009.
The sale is further subject to the condition that should the officer or employee resign from the
Parent Company prior to the expiration of the lock-up period, the shares purchased by such
resigning employee or officer shall be purchased at cost by the Parent Company as Treasury
stock. As of December 31, 2009, 24 employees resigned (9 in 2009, 13 in 2008 and 2 in 2007)
and their shares totaling 808,100 (130,900 in 2009, 548,500 in 2008 and 128,700 in 2007) were
bought back by the Parent Company.
As approved by the Parent Company’s BOD, the fair value of the shares issued under the SSPP
was measured at the grant date using the price-earnings multiple model taking into account the
terms and conditions upon which the shares were granted. The fair value at grant date was
P=1.33 per share. This transaction also resulted in an increase in equity by P=1.53 million,
P=2.16 million and P=1.00 million recognized as ‘Share-based payment’ under equity in 2009, 2008
and 2007, respectively.
On September 19, 2009, which is the end of the lock up period, the 808,100 shares bought back at
cost was transferred to the Parent Company’s retirement fund upon reimbursement of the
P=0.81 million paid by the Parent Company for those shares (see Note 16).
The expense arising from the share-based payment plan is recognized over the two-year lock-up
period. The expense recognized under ‘Salaries, wages and employee benefits’ in the parent
company statements of income amounted to P=1.53 million in 2009 and P=2.16 million in 2008.
18. Operating Lease Commitments
The Parent Company has entered into the following lease agreements for its office spaces:
(a) On September 30, 2008, a lease agreement with Sta. Elena Divisoria Condo was made for a
period of 60 months commencing on October 1, 2008 to September 30, 2013 with a 10.00%
escalation rate effective on the second year up to the fifth year of the lease term. The contract
was cancelled in May 2009.
*SGVMC116162*

- 36 -
(b) A lease agreement with Wynsum Realty was entered into for a period of 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. The contract was renewed for a period of
3 years commencing on September 1, 2010 to August 31, 2013.
(c) On February 7, 2007, a lease agreement with Oakridge Properties (Unit 2503) was made for a
period of 36 months commencing on February 1, 2007 to January 31, 2010 with a 10.00%
escalation on the monthly rental payable effective on the 13th and 25th month of the lease
term. The contract was renewed for another 2 years commencing on February 01, 2010 to
January 31, 2012.
(d) Operating lease agreements with Oakridge Properties (Unit 2603) were entered into for a
period of 12 months, which commenced on December 1, 2008 and expired on
November 30, 2009. The contract was renewed for a period of 2 years commencing on
December 1, 2009 to November 30, 2011 with a 10.00% escalation on the 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 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 24
months commencing February 1, 2009 to January 31, 2011 with a 10.00% escalation rate on
the aggregate monthly rental effective on the 13th month of the lease term
Total rent expense of the Parent Company amounted to P=11.74 million, P=11.11 million and
P=9.95 million in 2010, 2009 and 2008, respectively (see Note 22).
Future minimum rentals payable under non-cancelable operating leases are as follows:
2010 2009
Within one year P=11,225,119 P=7,615,824
After one year but not more than five years 3,122,961 6,159,385
P=14,348,080 P=13,775,209
19. Marketing Expenses
This account consists of:
2010 2009 2008
Marketing and promotions P=27,448,244 P=11,465,823 P=38,631,019
Advertising and publicity 4,950,676 3,378,503 5,269,536
P=32,398,920 P=14,844,326 P=43,900,555
*SGVMC116162*

20. Other Operating Expenses
This account consists of:
- 37 -
2010 2009 2008
Repairs and maintenance P=799,563 P=508,566 P=585,834
Taxes and licenses 6,085,301 2,253,135 2,450,304
Association dues 1,927,949 2,066,643 1,623,984
Insurance 613,229 754,666 956,624
Donations and contributions 1,155,280 1,209,115 –
Disallowance of input VAT by BIR – 1,338,804 –
Miscellaneous 4,464,242 2,673,515 6,220,904
P=15,045,564 P=10,804,444 P=11,837,650
‘Miscellaneous’ includes various expenses incurred for the business development of potential
foreign offices and other related expenses.
21. Realized Foreign Exchange Gains - Net and Other Income
‘Realized foreign exchange gains - net’ represents currency exchange income (net of losses)
arising primarily from trading third currencies to Philippine pesos. These third currencies are
collected from the remittance transactions.
‘Other income’ consists of:
2010 2009 2008
Interest income (Note 6) P=3,219,724 P=7,670,526 P=5,262,353
Rebates 687,509 2,595,006 –
Unrealized foreign exchange
gain - net 1,769,202 5,172,171 4,722,355
Dividends 596,381 34,242,442 11,124,039
Others 1,831,287 2,594,154 3,197,424
P=8,104,103 P=52,274,299 P=24,306,171
Interest income pertains to interest earned from deposits and short-term placements with banks.
Rebates pertain to the refund of bank service charges.
22. Related Party Transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
*SGVMC116162*

- 38 -
In the ordinary course of business, the Parent Company transacts with its subsidiaries and with
directors, officers, stockholders and other related interests. Under the Parent Company’s existing
policies, these transactions are made substantially on the same terms and conditions as
transactions with other individuals and businesses of comparable risks. The Parent Company
engages in transactions with related parties consisting primarily of the following:
(a) Delivery fees in the Parent Company’s statements of income in 2010, 2009 and 2008, include
those arising from clients of subsidiaries and associates as follows:
2010 2009 2008
IRCL P=55,227,017 P=51,071,109 P=42,169,099
HKHCL 33,202,567 25,364,567 –
IAPL and WEPL 26,166,135 30,787,242 27,782,207
ISPL 25,080,948 27,016,303 22,103,338
IGRL 21,562,260 22,736,884 27,348,257
LSML 10,342,216 9,633,356 7,102,659
IERCAG 3,899,549 4,368,628 2,737,852
INZL 3,498,875 2,697,639 454,796
P=178,979,567 P=173,675,728 P=129,698,208
(b) The Parent Company leases office spaces from Oakridge Properties. Rent expense amounted
to P=9.25 million, P=8.17 million and P=8.02million in 2010, 2009, and 2008, respectively.
Oakridge Properties is owned by JTKC, one of the stockholders of the Parent Company.
(c) 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.
(d) The Parent Company’s retirement fund is maintained with Sterling Bank of Asia (SBA), an
affiliate, as trustee (see Note 16).
(e) The Parent Company has deposits amounting to P=118.62 million and P=129.71 million with
SBA, an affiliate, as of December 31, 2010 and 2009, respectively. These deposits earned
P=1.12 million and P=1.16 million interest income in 2010 and 2009, respectively.
In addition to the related information disclosed elsewhere in the Parent Company’s financial
statements, the following are the yearend balances in respect of transactions with related parties
which were carried in terms that prevail in arm’s length transactions during the year:
2010 2009
Advances to related parties (Note 8):
Affiliates
Subsidiaries:
P=– P=3,743,285
IAPL – 1,261,382
I-Remit-USA 1,778,138 1,805,866
INZL 9,285,149 10,617,540
LSML 4,454,735 2,791,720
IERCAG 54,579,655 –
PSAGL – 878,984
IGRL 5,099,127 5,548,649
(Forward)
*SGVMC116162*

- 39 -
2010 2009
IRCL 71,646 56,610
WEPL 94,113 –
Associates:
HKHCL 3,021,191 2,944,333
ISPL – 2,181,783
Others 197,819 213,813
78,581,573 P=32,043,965
Advances from related parties (Note 13):
Subsidiaries:
PSAGL P=70,214,989 P=494,322
WEPL – 7,255
IAPL 3,946,101 –
P=74,161,090 P=501,577
Advances to affiliates include cash advances to stockholders, officers and directors.
As of December 31, 2010 and 2009, no provision for credit losses has been recognized for the
advances to related parties.
In 2010, the Parent Company recognized dividend income amounting P=0.60 million from
dividends declared by ISPL. In 2009, the Parent Company’s dividend income includes dividends
declared by ISPL (P=14.40 million), IRCL (P=9.54 million), WEPL (P=3.93 million), IAPL (P=3.30)
and PSAGL (P=3.07 million). 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 2010, 2009 and
2008 are as follows:
2010 2009 2008
Short-term employee benefits P=19,605,330 P=17,836,472 P=16,227,206
Post employee benefits 549,541 721,632 1,035,615
Share-based program – 435,303 618,250
P=20,154,871 P=18,993,407 P=17,881,071
23. Income Taxes
The provision for income tax consists of:
2010 2009 2008
Current
RCIT P=15,785,947 P=25,662,740 P=37,616,889
Final 643,945 1,534,105 1,052,470
P=16,429,892 P=27,196,845 P=38,669,359
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.
*SGVMC116162*

- 40 -
An MCIT of 2.00% on modified gross income is computed and compared with the RCIT. Any
excess of the MCIT over the RCIT is deferred and can be used as a tax credit against future
income tax liability for the next three years. In addition, current tax regulations provide for the
ceiling on the amount of entertainment, amusement and recreation (EAR) expenses that can be
claimed as a deduction against taxable income. The actual EAR expenses incurred by the Parent
Company was P=2.84 million, P=2.62 million and P=4.08 million in 2010, 2009 and 2008,
respectively. The allowed EAR limit was P=2.80 million, P=2.74 million, and P=3.13 million in 2010,
2009 and 2008, respectively. Under the regulation, EAR expenses allowed as deductible expense
for taxpayers engaged in the sale of services, including exercise of profession and use of lease
properties, like the Parent Company, is limited to the actual EAR paid or incurred but not to
exceed 1.00% of net revenue.
RA No. 9504, An Act Amending National Internal Revenue Code, provides that starting
July 1, 2008, the optional standard deduction (OSD) equivalent to 40.00% of gross income may be
claimed as an alternative deduction in computing for the RCIT. For the 2010 and 2009 RCIT
computation, the Parent Company elected to claim itemized expense deductions instead of the
OSD.
As of December 31, 2010 and 2009, the deferred tax assets and liability recognized by the Parent
Company relates to the tax effects of the following:
2010 2009
Deferred tax assets on:
Retirement liability P=281,692 P=1,143,728
Accrued courier charges 249,069 407,923
Subtotal
Less deferred tax liability on unrealized foreign
530,761 1,551,651
exchange gain 530,761 1,551,651
Net deferred tax assets P=– P=–
The Parent Company did not set up deferred tax assets on the following temporary differences:
2010 2009
Temporary differences on:
Accrued interest P=2,074,213 P=1,894,391
Accrued courier charges 393,793 2,085,271
Others 381,961 1,068,597
P=2,849,967 P=5,048,259
The management of the Parent Company believes that it is not highly probable that these
temporary differences will be realized in the future.
*SGVMC116162*

- 41 -
A reconciliation of the statutory income tax rates and the effective income tax rates in 2010, 2009
and 2008 follows:
2010 2009 2008
Statutory income tax 30.00% 30.00% 35.00%
Tax effects of:
Unrecognized deferred tax asset (1.15) (2.59) 2.02
Interest income subject to final tax (0.57) (0.77) (0.67)
Nondeductible interest expense 0.56 0.76 0.66
Others – – (3.98)
Effective income tax 28.84% 27.40% 33.03%
24. Contingencies
The Parent Company has various contingencies arising in the ordinary conduct of business which
have either pending decision by the courts or are being contested, the outcome of which are not
presently determinable.
In the opinion of management and its legal counsel, the eventual liability under these lawsuits or
claims, if any, will not have a material or adverse effect on the Parent Company’s financial
position and results of operations. The information usually required by PAS 37 is not disclosed on
the grounds that it can be expected to prejudice the outcome of these lawsuits, claims and
assessments.
25. Approval of the Release of the Parent Company Financial Statements
The accompanying financial statements of the Parent Company were approved and authorized for
issue by the BOD on March 25, 2011.
26. Supplementary Information Required Under Revenue Regulations No. 15-2010
The Parent Company reported and/or paid the following types of taxes in 2010:
Value added tax (VAT)
The Parent Company’s sales are subject to output VAT while its purchases from other VATregistered
individuals or corporations are subject to input VAT. The VAT rate is 12.0%.
a. Output VAT for 2010
Zero-rated sales of goods and services consists of export sales and those rendered to persons
or entities whose exemptions are provided under special laws or international agreements to
which the Philippines is a signatory.
The Parent Company, being engaged in the business of fund transfer and remittance services
of any form or kind of currencies or monies, is registered as a zero-rated VAT taxpayer under
Section 108 (B)(2) of NIRC .
*SGVMC116162*

. Input VAT
- 42 -
Amount
Balance at January 1, 2010 P=27,821,193
Current year’s domestic purchases/payments for:
Goods other than for resale or manufacture 3,961
Capital goods subject to amortization 24,493
Capital goods not subject to amortization 5,357
Services lodged under other accounts 754,737
Total 788,548
Adjustments (115,937)
Balance at December 31, 2010 P=28,493,804
c. Withholding taxes
Details of total remittances in 2010 and balance as of December 31, 2010 of withholding taxes
are as follows:
Total
Remittances Balance
Withholding taxes on compensation and benefits P=9,573,703 P=225,036
Expanded withholding taxes 4,193,197 589,960
P=13,766,900 P=814,996
d. Taxes and licenses
Other taxes and licenses includes all other taxes, local and national, and are recognized as
‘Taxes and licenses’ included under ‘Other operating expenses’. Details follow:
Amount
Documentary stamp taxes:
Applied on loans P=3,000,344
Applied on other transactions 2,892
Licenses and permits 2,236,950
Others 845,115
P=6,085,301
*SGVMC116162*

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 - Q 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-Q
Form Type
Amendment Designation (if applicable)
March 31, 2011
Period Ended Date
(Secondary License Type and File Number)
SEC Number A200101631
PSE Code
File Number

ASSETS
Unaudited Audited
Mar. 31, 2011 Dec. 31, 2010
Current Assets
Cash and Cash Equivalents 961,416,202 883,817,947
Financial Assets at Fair Value through Profit or Loss 111,034,116 102,905,294
Receivables 1,252,378,391 1,155,950,682
Other Current Assets 17,884,674 23,486,618
Total Current Assets 2,342,713,382 2,166,160,541
Noncurrent Assets
Investments in Associates 21,592,663 20,932,236
Property and Equipment - net 28,117,967 27,013,308
Goodwill 94,455,112 93,092,118
Deferred Tax Asset 5,265,456 4,232,920
Software Costs - net 2,600,039 2,081,746
Other Noncurrent Assets 43,095,338 42,637,246
Total Noncurrent Assets 195,126,575 189,989,574
2,537,839,958 2,356,150,115
LIABILITIES AND EQUITY
I-REMIT, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
Current Liabilities
Beneficiaries and Other Payables 533,164,769 199,496,915
Income Tax Payable 16,004,781 6,942,551
Interest-bearing Loans 701,000,000 877,000,000
Total Current Liabilities 1,250,169,551 1,083,439,466
Noncurrent Liability
Retirement Liability 778,261 778,261
Deferred Tax Liability 0 29,765
Total Noncurrent Liabilities 778,261 808,026
Total Liabilities 1,250,947,812 1,084,247,492
Equity Attributable to Equity Holders of
the Parent Company
Capital Stock 562,417,000 562,417,000
Capital Paid-in Excess of Par Value 429,513,501 429,513,501
Additional Capital Adjustment (11,097,286) 0
Retained Earnings 389,424,854 357,893,779
Treasury Stock (40,115,150) (40,115,150)
Cumulative Translation Adjustment (39,481,932) (38,951,963)
1,290,660,987 1,270,757,167
Minority Interest (3,768,841) 1,145,456
Total Equity 1,286,892,146 1,271,902,623
2,537,839,958 2,356,150,115
1

I-REMIT, INC. AND SUBSIDIARIES
Consolidated Statements of Income
Unaudited Unaudited
Jan. 1 to Jan. 1 to
Mar. 31, 2011 Mar. 31, 2010
REVENUE
Delivery Fees 128,162,854 119,732,791
Realized Foreign Exchange Gains - Net 85,976,112 68,024,806
Other Fees 207,386 199,697
214,346,352 187,957,294
COSTS OF SERVICES
Bank Charges 45,629,322 43,326,790
Delivery Charges 3,169,479 8,541,948
48,798,801 51,868,738
GROSS INCOME 165,547,551 136,088,556
OPERATING EXPENSES
Salaries, Wages and Employee Benefits 62,258,705 50,933,360
Rental 13,857,319 12,508,440
Marketing 9,188,279 7,573,544
Professional Fees 10,827,036 8,213,203
Transportation and Travel 6,955,819 6,580,365
Communication, Light and Water 6,392,805 5,251,323
Supplies 2,773,347 3,109,902
Depreciation and Amortization 3,268,675 3,471,026
Entertainment, Amusement and Recreation 919,309 637,176
Other Operating Expenses 4,098,238 3,849,316
Other Charges (Income), Net 7,916,379 4,794,946
128,455,911 106,922,601
INCOME BEFORE INCOME TAX 37,091,640 29,165,955
PROVISION FOR INCOME TAX 8,724,086 4,665,723
NET INCOME 28,367,554 24,500,232
Attributable to:
Equity Holders of the Parent Company 31,531,076 25,329,368
Minority Interest (3,163,522) (829,136)
28,367,554 24,500,232
Basic/Dilutive Earnings Per Share
0 (0)
Attributable to Equity Holders of the Parent
Company
0.06 0.05
2

I-REMIT, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
Unaudited Unaudited
Jan. 1 to Jan. 1 to
Mar. 31, 2011 Mar. 31, 2010
CAPITAL FUNDS, BEGINNING 1,271,902,623 1,252,427,018
Add / (Deduct) Changes in Capital:
Net Income for the Period 31,531,076 25,329,368
Acquisition of Minority Interest (4,914,297) (1,871,248)
Other Equity Adjustment (11,627,256) (6,761,625)
CAPITAL FUNDS, ENDING 1,286,892,146 1,269,123,513
3

I-REMIT, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Unaudited Unaudited
Jan. 1 to Jan. 1 to
Mar. 31, 2011 Mar. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Income Before Income Tax 37,091,640 29,165,955
Adjustments for:
Interest Expense 8,324,962 10,231,122
Depreciation and Amortization 3,268,675 3,471,026
Interest Income (3,738,367) (931,508)
Changes in Operating Assets and Liabilities
Decrease (Increase) in:
Receivables (96,427,709) 222,386,752
Other Current Assets 5,601,944 (11,610,823)
Financial Assets at FV through PL (8,128,822) 5,340,858
Increase (Decrease) in:
Beneficiaries and Other Payables 342,730,085 (73,496,460)
Deferred Tax Liability (29,765)
Retirement Liability 0 0
Cash Provided by (Used in) Operations 288,692,643 184,556,921
Interest Received 3,738,367 931,508
Interest Paid (8,324,962) (10,231,122)
Income Taxes Paid (8,724,086) (4,665,723)
Net Cash Provided by (Used in) Operating Activities 275,381,962 170,591,585
CASH FLOWS FROM INVESTING ACTIVITIES
(Increase)/Decrease in Investment in an Associate (660,427) (566,872)
Additional Capital Adjustment (11,097,286) 0
Acquisitions of Property and Equipment (3,408,419) (3,943,226)
Acquisition of Software (1,154,380) (60,900)
Increase in Other Noncurrent Assets (1,490,628) (206,976)
Net Cash Provided by (Used in) Investing Activities (17,811,140) (4,777,973)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (Payment of) Interest-bearing Loans (176,000,000) (380,000,000)
Increase (Decrease) in minority interest (1,750,775) (1,042,112)
Net Cash Provided by Financing Activities (177,750,775) (381,042,112)
INCREASE (DECREASE) IN
TRANSLATION ADJUSTMENTS (2,221,792) (6,761,626)
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENT 77,598,255 (221,990,126)
CASH AND CASH EQUIVALENT, BEGINNING 883,817,947 962,813,647
CASH AND CASH EQUIVALENT, ENDING 961,416,202 740,823,521
4

I-REMIT, INC. AND SUBSIDIARIES
Aging of Consolidated Receivables
Unaudited
March 31, 2011
Total Current 2-30 Days 31-60 Days Over 60 Days
Agents 1,045,177,486 1,045,177,486
-
-
-
Couriers 6,737,447 - 6,737,447
-
-
Related Parties 56,691,366 -
-
- 56,691,366
Others 143,772,092 -
-
- 143,772,092
1,252,378,391 1,045,177,486 6,737,447 - 200,463,458
5

Item 1. Financial Statements
PART I – FINANCIAL INFORMATION
The following financial statements are submitted as part of this report:
a. Consolidated Balance Sheets as of March 31, 2011 (unaudited) and December 31, 2010
(audited);
b. Unaudited Comparative Consolidated Statements of Income for the three (3) months
ended March 31, 2011 and March 31, 2010;
c. Unaudited Comparative Consolidated Statements of Changes in Equity for the three (3)
months ended March 31, 2011 and March 31, 2010;
d. Unaudited Comparative Consolidated Statements of Cash Flows for the three (3) months
ended March 31, 2011 and March 31, 2010;
e. Aging of Consolidated Receivables as of March 31, 2011 (unaudited);
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of
Operations
March 31, 2011 vs. December 31, 2010
The total assets of the Company increased by PHP 181.7 million or 7.7% to PHP 2.537 billion
as of March 31, 2011 against PHP 2.356 billion as of December 31, 2010. Cash and cash
equivalents increased by PHP 77.6 million or 8.8% from PHP 883.8 million as of December
31, 2010 to PHP 961.4 million as of March 31, 2011. Financial assets at FVPL, which consist
of investments in private debt securities (listed overseas) held for trading, increased by PHP
8.1 million or 7.9% from PHP 102.9 million as of March 31, 2010 to PHP 111.0 million as of
March 31, 2011. Receivables increased by PHP 96.4 million or 8.3% from PHP 1.155 billion
as of December 31, 2010 to PHP 1.252 billion as of March 31, 2011. Other current assets
decreased by PHP 5.6 million or -23.9% from PHP 23.5 million as of December 31, 2010 to
PHP 17.9 million as of March 31, 2011. Investments in associates increased by PHP 0.7
million or 3.2% from PHP 20.9 million as of December 31, 2010 to PHP 21.6 million as of
March 31, 2011. Property and equipment-net increased by PHP 1.1 million or 4.1% from PHP
27.0 million as of December 31, 2010 to PHP 28.1 million as of March 31, 2011. Goodwill
increased by PHP 1.4 million or 1.5% from PHP 93.1 million as of December 31, 2010 to PHP
94.5 million as of March 31, 2011 due to foreign exchange adjustment. Deferred tax asset
increased by PHP 1.0 million or 24.4% from PHP 4.2 million as of December 31, 2010 to PHP
5.2 million as of March 31, 2011. Software Costs–net increased by PHP 0.5 million or 24.9%
from PHP 2.1 million as of December 31, 2010 to PHP 2.6 million as of March 31, 2011.
Other noncurrent assets increased by PHP 0.5 million or 1.1% from PHP 42.6 million as of
December 31, 2010 to PHP 43.1 million as of March 31, 2011.
6

Total liabilities increased by PHP 166.7 million or 15.4% from PHP 1.084 billion as of
December 31, 2010 to PHP 1.250 billion as of March 31, 2011. Current liabilities increased
by PHP 166.7 million or 15.4% from PHP 1.083 billion as of December 31, 2010 to PHP 1.250
billion as of March 31, 2011 mainly due to the increase in payables by PHP 333.7 million or
167.2% from PHP 199.5 million as of December 31, 2010 to PHP 533.2 million as of March
31, 2011. Interest-bearing loans decreased by PHP 176.0 million or -20.1% from PHP 877.0
million as of December 31, 2010 to PHP 701.0 million as of March 31, 2011. Interest-bearing
loans consist of unsecured, short-term peso-denominated loans from various local financial
institutions with interest rates ranging from 5.0% to 6.0% per annum in First Quarter 2011 and
5.5% to 6.0% in 2010.
Accounts payable and other liabilities increased by PHP 342.7 million or 166.0% to PHP
549.1 million as of March 31, 2011 compared with PHP 206.4 million as of December 31,
2010. Comprising accounts payable and other liabilities are payables to beneficiaries of PHP
123.3 million, payables to agents, couriers and trading clients of PHP 347.7 million, payable to
suppliers of PHP 0.6 million, accrued expenses of PHP 16.6 million, withholding tax payable
of PHP 2.4 million, advances from related parties of PHP 40.6 million, income tax payable of
PHP 16.0 million, and non-trade payables of PHP 1.9 million. Long-term debt amounting to
PHP 0.8 million as of March 31, 2011 represents retirement liability.
The Company’s stockholders’ equity as of March 31, 2011 stood at PHP 1.286 billion, higher
by PHP 15.0 million or 1.2% against the year-end 2010 level of PHP 1.271 billion due to
higher net income.
On March 25, the Company’s Board of Directors has authorized the acquisition of additional
equity in Worldwide Exchange Pty Ltd (“WEPL”) equivalent to thirty-five percent (35%) of
WEPL’s outstanding capital stock for a total consideration of AUS$ 274,345.57. On March 31,
the sale and purchase transaction was completed bringing the shareholdings of the Company
in WEPL to 70% direct voting interest and 30% indirect voting interest through the Company’s
wholly-owned subsidiary, I-Remit Australia Pty Ltd. WEPL is engaged in servicing the
remittance needs of overseas Filipino workers in Australia through its two (2) branches
located in Blacktown, New South Wales and Perth, Western Australia.
On April 15, 2011, the Bangko Sentral ng Pilipinas reported that remittances from overseas
Filipinos reached USD1.5 billion in February 2011, posting a year-on-year increment of 6.2%.
As a result, total remittances for the first two (2) months of the year totaled USD3.0 billion,
representing a growth of 6.9%. Remittances from sea-based and land-based workers for the
two-month period registered increases of 12.7% and 5.5%, respectively.
Remittance flows into the country continued to draw strength from steady demand for Filipino
manpower abroad. Latest reports by the Philippine Overseas Employment Administration
(POEA) indicated that 43,360 job orders for service, production, and professional, technical
and related workers were processed for the period January 1 – March 31, 2011 in response to
the manpower requirements in Saudi Arabia, United Arab Emirates (UAE), Qatar, Kuwait, and
Taiwan.
Data from the POEA also showed that the total number of deployed overseas workers for the
period January-November 2010 grew by 2.7% to 1,363,083 from 1,326,619 in the same
period a year ago. Of the total deployed overseas workers, more than three-fourths were landbased,
more than 70% of which were rehired workers. The leading destinations of the landbased
workers (new hires and rehires) were Saudi Arabia, UAE, Hong Kong, Qatar and
Singapore.
7

On March 12, 2011, the Saudi Arabia Ministry of Foreign Affairs announced that it would stop
the processing of employment contracts for Filipino household service workers until further
notice. According to Philippine labor officials, the ban is connected to the new Migrant
Workers and Overseas Filipinos Act which requires prior to deployment a Department of
Foreign Affairs (DFA) certification that the rights of domestic helpers would be adequately
protected. As of November 2010, there were 80,656 Filipino household service workers with
an estimated 9,000 Filipinos deployed in Saudi Arabia last year.
Also, in March 2011, new Filipino workers have flown to Taiwan after its Ministry of Foreign
Affairs lifted deployment restrictions. Taiwan imposed restrictions on visa applications and
work permits after the deportation to China of 14 Taiwanese accused of fraudulent activities.
Recently, the BSP announced that it expects remittances from oversees Filipino workers
(OFWs) growing by 7% to a record level of USD20.1 billion this year from USD18.76 billion
last year. This was lower than the earlier original growth target of eight percent to about
USD20.2 billion this year. The BSP stated that remittances in 2011 are expected to remain
resilient amid possible downside risks such as the turmoil in the MENA region and natural
disasters in Japan.
Below are the comparative key performance indicators of the Company and its subsidiaries:
Performance Indicator Definition Mar. 31, 2011 Dec. 31, 2010
Net income* over average
(Three Months) (Full Year)
Return on Equity (ROE) stockholders’ equity during
the period
2% 5%
Return on Assets
(ROA)
Net income* over average
total assets during the period
1% 3%
Earnings per Share
(EPS)
Net income* over average
number of outstanding shares
Total transaction value in
PHP 0.05 PHP 0.12
Sales Growth
USD in present period over
the previous year
9% 10%
Gross Income
Revenue less total cost of
services (PHP millions)
165.5 562.0
* 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 period ended
March 31, 2011 and for the year ended December 31, 2010 are PHP 0.06 and PHP 0.14, respectively.
8

Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
(Three Months)
Lucky Star Management Limited
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
Dec. 31, 2010
(Full Year)
5% 3%
2% 1%
PHP 3.12 PHP 1.80
7% 3%
23.7 97.5
(Three Months)
IRemit Global Remittance Limited
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
9
Dec. 31, 2010
(Full Year)
19% 89%
9% 26%
PHP 10.39 PHP 30.53
-29% 8%
6.7 25.6
(Three Months)
Dec. 31, 2010
(Full Year)
5% 39%
1% 6%
PHP 1,650.29 PHP 10,191.13
15% 1%
10.5 43.8

I-Remit Australia Pty Ltd
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
(Three Months)
Worldwide Exchange Pty Ltd
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
Dec. 31, 2010
(Full Year)
0.1% 1%
0.1% 0.2%
PHP 2,433.00 PHP 14,435.50
- -
0.1 0.3
(Three Months)
I-Remit New Zealand Limited
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
10
Dec. 31, 2010
(Full Year)
-40% 5%
-5% 1%
(PHP 15.52) PHP 2.00
21% 20%
7.5 29.2
(Three Months)
Dec. 31, 2010
(Full Year)
11% 20%
-6% -9%
(PHP 719.31) (PHP 1,129.10)
19% 38%
1.4 8.8

IRemit Europe Remittance Consulting AG
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
(Three Months)
Power Star Asia Group Limited
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
11
Dec. 31, 2010
(Full Year)
149% -193%
-22% -74%
(PHP 180.05) (PHP 666.31)
19% 94%
8.3 11.7
(Three Months)
Dec. 31, 2010
(Full Year)
11% 38%
11% 36%
PHP 22.72 PHP 63.27
- -
21.7 62.4

March 31, 2011 vs. March 31, 2010
I-Remit realized a consolidated net income of PHP 28.4 million in First Quarter 2011, an
increase of PHP 3.9 million or 15.8% over the consolidated net income of PHP 24.5 million in
First Quarter 2010.
Revenues increased by PHP 26.3 million or 14.0% to PHP 214.3 million in First Quarter 2011
from PHP 188.0 million in First Quarter 2010 mainly due to the 4.2% increase in transaction
count (from 669,686 in First Quarter 2010 to 698,007 in First Quarter 2011) and a 9.5%
increase in USD remittance volume (from USD 292.6 million in First Quarter 2010 to USD
320.4 million in First Quarter 2011). Of the total transaction count in First Quarter 2011, the
percentage contributions per region are as follows: Asia-Pacific, 43%; Middle East, 27%;
North America, 14%; and Europe, 13%. In terms of USD remittance volume, the regional
contributions are as follows: Asia-Pacific, 33%; Middle East, 18%, North America, 15%, and
Europe, 13%. Accordingly, the Company’s gross income increased by PHP 29.4 million or
21.6% from PHP 136.1 million in First Quarter 2010 to PHP 165.5 million in First Quarter
2011.
Total operating expenses was higher by PHP 21.5 million or 20.1% from PHP 106.9 million in
First Quarter 2010 to PHP 128.4 million in First Quarter 2011 mainly on account of higher
salaries, wages and employee benefits, professional fees, marketing and rental expenses.
The total assets of the Company increased by PHP 486.0 million or 23.7% to PHP 2.537
billion as of March 31, 2011 against PHP 2.051 billion as of March 31, 2010. Cash and cash
equivalents increased by PHP 220.6 million or 29.8% from PHP 740.8 million as of March 31,
2010 to PHP 961.4 million as of March 31, 2011. Financial assets at FVPL, which consist of
investments in private debt securities (listed overseas) held for trading, stood at PHP 111.0
million as of March 31, 2011, an increase of PHP 50.6 million or 83.7% against PHP 60.4
million as of March 31, 2010. Receivable increased by PHP 227.2 million or 22.2% from PHP
1.025 billion as of March 31, 2010 to PHP 1.252 billion as of March 31, 2011. Other current
assets decreased by PHP 16.0 million or -47.3% from PHP 33.9 million as of March 31, 2010
to PHP 17.9 million as of March 31, 2011. Investments in associates increased by PHP 2.0
million or 10.2% from PHP 19.6 million as of March 31, 2010 to PHP 21.6 million as of March
31, 2011. Property and equipment-net decreased by PHP 1.1 million or -3.9% from PHP 29.2
million as of March 31, 2010 to PHP 28.1 million as of March 31, 2011. Goodwill decreased
by PHP 3.1 million or -3.2% from PHP 97.6 million as of March 31, 2010 to PHP 94.5 million
as of March 31, 2011 due to foreign exchange adjustment. Deferred tax asset increased by
PHP 1.6 million or 43.2% from PHP 3.6 million as of March 31, 2010 to PHP 5.2 million as of
March 31, 2011. Software Costs–net increased by PHP 0.2 million or 8.8% from PHP 2.4
million as of March 31, 2010 to PHP 2.6 million as of March 31, 2011. Other noncurrent
assets increased by PHP 4.0 million or 10.3% from PHP 39.1 million as of March 31, 2010 to
PHP 43.1 million as of March 31, 2011.
Total liabilities increased by PHP 468.2 million or 59.8% from PHP 782.8 million as of March
31, 2010 to PHP 1.250 billion as of March 31, 2011. Current liabilities increased by PHP
471.0 million or 60.5% from PHP 779.1 million as of March 31, 2010 to PHP 1.250 billion as of
March 31, 2011 mainly due to the increase in interest-bearing loans by PHP 151.0 million or
27.4% from PHP 550.0 million as of March 31, 2010 to PHP 701.0 million as of March 31,
2011. Interest-bearing loans consist of unsecured, short-term peso-denominated loans from
various local financial institutions with interest rates ranging from 5.0% to 6.0% per annum in
First Quarter 2011 and 6.0% to 8.0% in First Quarter 2010.
12

Accounts payable and other liabilities increased by PHP 320.0 million or 139.7% to PHP
549.1 million as of March 31, 2011 compared with PHP 229.1 million as of March 31, 2010.
Comprising accounts payable and other liabilities are payables to beneficiaries of PHP 123.3
million, payables to agents, couriers and trading clients of PHP 347.7 million, payable to
suppliers of PHP 0.6 million, accrued expenses of PHP 16.6 million, withholding tax payable
of PHP 2.4 million, advances from related parties of PHP 40.6 million, income tax payable of
PHP 16.0 million, and non-trade payables of PHP 1.9 million. Long-term debt amounting to
PHP 0.8 million as of March 31, 2011 represents retirement liability.
The Company’s stockholders’ equity as of March 31, 2011 stood at PHP 1.286 billion, higher
by PHP 17.8 million or 1.4% against the March 31, 2010 level of PHP 1.269 billion due to
higher net income.
On March 25, the Company’s Board of Directors has authorized the acquisition of additional
equity in Worldwide Exchange Pty Ltd (“WEPL”) equivalent to thirty-five percent (35%) of
WEPL’s outstanding capital stock for a total consideration of AUS$ 274,345.57. On March 31,
the sale and purchase transaction was completed bringing the shareholdings of the Company
in WEPL to 70% direct voting interest and 30% indirect voting interest through the Company’s
wholly-owned subsidiary, I-Remit Australia Pty Ltd. WEPL is engaged in servicing the
remittance needs of overseas Filipino workers in Australia through its two (2) branches
located in Blacktown, New South Wales and Perth, Western Australia.
On April 15, 2011, the Bangko Sentral ng Pilipinas reported that remittances from overseas
Filipinos reached USD1.5 billion in February 2011, posting a year-on-year increment of 6.2%.
As a result, total remittances for the first two (2) months of the year totaled USD3.0 billion,
representing a growth of 6.9%. Remittances from sea-based and land-based workers for the
two-month period registered increases of 12.7% and 5.5%, respectively.
Remittance flows into the country continued to draw strength from steady demand for Filipino
manpower abroad. Latest reports by the Philippine Overseas Employment Administration
(POEA) indicated that 43,360 job orders for service, production, and professional, technical
and related workers were processed for the period January 1 – March 31, 2011 in response to
the manpower requirements in Saudi Arabia, United Arab Emirates (UAE), Qatar, Kuwait, and
Taiwan.
Data from the POEA also showed that the total number of deployed overseas workers for the
period January-November 2010 grew by 2.7% to 1,363,083 from 1,326,619 in the same
period a year ago. Of the total deployed overseas workers, more than three-fourths were landbased,
more than 70% of which were rehired workers. The leading destinations of the landbased
workers (new hires and rehires) were Saudi Arabia, UAE, Hong Kong, Qatar and
Singapore.
On March 12, 2011, the Saudi Arabia Ministry of Foreign Affairs announced that it would stop
the processing of employment contracts for Filipino household service workers until further
notice. According to Philippine labor officials, the ban is connected to the new Migrant
Workers and Overseas Filipinos Act which requires prior to deployment a Department of
Foreign Affairs (DFA) certification that the rights of domestic helpers would be adequately
protected. As of November 2010, there were 80,656 Filipino household service workers with
an estimated 9,000 Filipinos deployed in Saudi Arabia last year.
Also, in March 2011, new Filipino workers have flown to Taiwan after its Ministry of Foreign
Affairs lifted deployment restrictions. Taiwan imposed restrictions on visa applications and
work permits after the deportation to China of 14 Taiwanese accused of fraudulent activities.
13

Recently, the BSP announced that it expects remittances from oversees Filipino workers
(OFWs) growing by 7% to a record level of USD20.1 billion this year from USD18.76 billion
last year. This was lower than the earlier original growth target of eight percent to about
USD20.2 billion this year. The BSP stated that remittances in 2011 are expected to remain
resilient amid possible downside risks such as the turmoil in the MENA region and natural
disasters in Japan.
Below are the comparative key performance indicators of the Company and its subsidiaries:
Performance Indicator Definition Mar. 31, 2011 Mar. 31, 2010
Net income* over average
(Three Months) (Three Months)
Return on Equity (ROE) stockholders’ equity during
the period
2% 2%
Return on Assets
(ROA)
Net income* over average
total assets during the period
1% 1%
Earnings per Share
(EPS)
Net income* over average
number of outstanding shares
Total transaction value in
PHP 0.05 PHP 0.04
Sales Growth
USD in present period over
the same period in the
previous year
9% 17%
Gross Income
Revenue less total cost of
services (PHP millions)
165.5 136.1
* 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 periods ended
March 31, 2011 and March 31, 2010 are P 0.06 and P 0.05, respectively.
14

Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
(Three Months)
Lucky Star Management Limited
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
Mar. 31, 2010
(Three Months)
5% 3%
2% 1%
PHP 3.12 PHP 1.87
7% 18%
23.7 24.1
(Three Months)
IRemit Global Remittance Limited
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
15
Mar. 31, 2010
(Three Months)
19% 16%
9% 4%
PHP 10.39 PHP 3.48
-29% 24%
6.7 5.4
(Three Months)
Mar. 31, 2010
(Three Months)
5% 9%
1% 1%
PHP 1,650.29 PHP 1,943.58
15% 5%
10.5 10.5

I-Remit Australia Pty Ltd
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
(Three Months)
Worldwide Exchange Pty Ltd
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
Mar. 31, 2010
(Three Months)
0.1% 7%
0.1% 1%
PHP 2,433.00 PHP 137,411.11
- -
0.1 0.1
(Three Months)
I-Remit New Zealand Limited
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
16
Mar. 31, 2010
(Three Months)
-40% 20%
-5% 3%
(PHP 15.52) PHP 9.00
21% 29%
7.5 7.3
(Three Months)
Mar. 31, 2010
(Three Months)
11% -10%
-6% 4%
(PHP 719.31) PHP 450.26
19% 155%
1.4 2.9

IRemit Europe Remittance Consulting AG
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
(Three Months)
Power Star Asia Group Limited
Performance Indicator Definition Mar. 31, 2011
Return on Equity (ROE)
Return on Assets
(ROA)
Earnings per Share
(EPS)
Sales Growth
Gross Income
Net income over average
stockholders’ equity during
the period
Net income over average total
assets during the period
Net income over average
number of outstanding shares
Total transaction value in
USD in present period over
the previous year
Revenue less total cost of
services (PHP millions)
17
Mar. 31, 2010
(Three Months)
149% -10%
-22% -8%
(PHP 180.05) (PHP 65.13)
19% 22%
8.3 1.7
(Three Months)
Mar. 31, 2010
(Three Months)
11% 11%
11% 9%
PHP 22.72 PHP 15.08
- -
21.7 16.3

The Company is not aware of any known trends, demands, 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 known 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.
18

I-REMIT, INC.
COMPLIANCE WITH SEC LETTER
DATED OCTOBER 29, 2008
The information required by SEC letter dated October 29, 2008 can be found in the following
pages:
a. Financial risk exposures of I-Remit, Inc. (“Company”)
Please refer to pages 25 to 26.
b. Disclosure on the financial instrument of the Company
(1) Description of the financial instruments of the Company and the
classification and measurements applied for each.
Please refer to pages 20 to 23.
(2) Amount of Company’s investments in foreign securities.
Not applicable as the Company has no investments in foreign securities.
(3) Significant judgments made in classifying a particular financial instrument
in the fair value hierarchy.
Please refer to page 24.
(4) Explanation of how risk is incorporated and considered in the valuation of
assets or liabilities.
Please refer to pages 24 to 26.
(5) Comparison of the fair values as of date of the recent interim financial
report and as of date of the preceding interim period, and the amount of
gain/loss recognized for each of the said periods.
Not applicable.
(6) Criteria used to determine whether the market for a financial instrument is
active or inactive as defined under PAS 39-Financial Instruments.
Please refer to pages 24 to 26.
19

Summary of Significant Accounting Policies
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 consolidated statement of income for financial assets at fair
value through profit or loss (FVPL). Receivables, beneficiaries and other payables, and
interest-bearing loans are recognized when cash is received by the Group or advanced
to the borrowers/beneficiaries.
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, held-to-maturity (HTM) investments and
available-for-sale (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 March 31, 2011 and December 31, 2010, 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.
The Group evaluated its HFT investments to determine whether the intention to sell them
in the near term is still appropriate. When the Group is unable to trade these financial
assets due to inactive markets and management’s intention to sell them in the
foreseeable future significantly changes, the Group may elect to reclassify these financial
assets in rare circumstances. The reclassification to loans and receivables, AFS
investment or HTM investment depends on the nature of the asset. This evaluation does
not affect any financial assets designated at FVPL using the fair value option at
designation.
HFT investments are recorded in the consolidated balance sheet at fair value. Changes
in fair value are recognized as ‘Net trading gains’ in the consolidated statement of
income. Interest earned is recognized as interest income included under ‘Other Income’
in the consolidated statement of income. Quoted market prices, when available, are used
to determine the fair value of these financial instruments. If quoted market prices are not
available, their fair values are estimated based on inputs that are observable in the
market.
Classified under this category are the Group’s investments in debt securities.
20

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 method less any allowance for credit losses.
Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees and costs that are an integral part of the effective interest rate (EIR).
Gains and losses are recognized in the consolidated statement of income when the
receivables are derecognized or impaired, as well as through the amortization process.
Receivables are classified as current assets when the Group expects to realize or collect
the asset within twelve months from the balance sheet date. Otherwise, these are
classified as non-current assets.
Classified under this category are the Group’s ‘Cash and cash equivalents’, ‘Accounts
receivables’, ‘Other receivables’ and refundable deposits included under ‘Other
noncurrent assets’.
Other financial liabilities
Issued financial instruments or their components, which are not designated as at FVPL,
are classified as other financial liability 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 effective interest method.
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 consolidated statement of income unless it qualifies for recognition as
some other type of asset. In cases where use is made of data which is not observable,
21

the difference between the transaction price and model value is only recognized in the
consolidated statement of income when the inputs become observable or when the
instrument is derecognized. For each transaction, the Group determines the appropriate
method of recognizing the Day 1 difference amount.
Derecognition of Financial Assets and Liabilities
Financial asset
A financial asset (or, where applicable a part of a financial asset or part of a group of
similar financial assets) is derecognized when:
• the rights to receive cash flows from the asset have expired;
• the Group retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to a third part under a ‘pass
through’ arrangement; or
• the Group has transferred its rights to receive cash flows from the asset and either
(a) has transferred substantially all the risks and rewards of the asset, or (b) has
neither transferred nor retained substantially all the risks and rewards of the asset,
but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has
entered into a pass-through arrangement, and has neither transferred nor retained
substantially all the risks and rewards of the asset nor transferred control of the asset,
the asset is recognized to the extent of the Group’s continuing involvement in the asset.
Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Group could be required to repay.
Financial liability
A financial liability is derecognized when the obligation under the liability is discharged,
cancelled or has expired. When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition of
the original liability and the recognition of a new liability, and the difference in the
respective carrying amounts is recognized in the consolidated statement of income.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the
consolidated balance sheet if, and only if, there is a currently enforceable legal right to
offset the recognized amounts and there is an intention to settle on a net basis, or to
realize the asset and settle the liability simultaneously.
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.
22

Financial assets carried at amortized cost
For financial assets carried at amortized cost, the Group first assesses whether objective
evidence of impairment exists individually for financial assets that are individually
significant, or collectively for financial assets that are not individually significant.
If there is objective evidence that an impairment loss has been incurred, the amount of
the loss is measured as the difference between the asset’s carrying amount and the
present value of the estimated future cash flows (excluding future credit losses that have
not been incurred). The carrying amount of the asset is reduced through the use of an
allowance account and the amount of loss is charged to the consolidated statement of
income. Interest income continues to be recognized based on the original EIR of the
asset. Receivables, together with the associated allowance accounts, are written off
when there is no realistic prospect of future recovery and all collateral has been realized.
If subsequently, the amount of the estimated impairment loss decreases because of an
event occurring after the impairment was recognized, the previously recognized
impairment loss is reduced by adjusting the allowance account. If a future write-off is
later recovered, any amounts formerly charged are credited to profit or loss.
If the Group determines that no objective evidence of impairment exists for an
individually assessed financial asset, whether significant or not, it includes the asset in a
group of financial assets with similar credit risk characteristics and collectively assesses
for impairment. Those characteristics are relevant to the estimation of future cash flows
for groups of such assets by being indicative of the debtors’ ability to pay all amounts
due according to the contractual terms of the assets being evaluated. Assets that are
individually assessed for impairment and for which an impairment loss is, or continues to
be, recognized are not included in a collective assessment for impairment.
The present value of the estimated future cash flows is discounted at the financial
asset’s original EIR. If a financial asset has a variable interest rate, the discount rate for
measuring any impairment loss is the current EIR, adjusted for the original credit risk
premium.
For the purpose of a collective evaluation of impairment, financial assets are grouped on
the basis of such credit risk characteristics as geographical classification. Future cash
flows in a group of financial assets that are collectively evaluated for impairment are
estimated on the basis of historical loss experience for assets with credit risk
characteristics similar to those in the group.
Historical loss experience is adjusted on the basis of current observable data to reflect
the effects of current conditions that did not affect the period on which the historical loss
experience is based and to remove the effects of conditions in the historical period that
do not exist currently. 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.
23

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.
Fair Value Measurement
The following methods and assumptions were used to estimate the fair value of the
financial instruments:
Cash and cash equivalents, Account receivables, Other receivables, Beneficiaries and
other payables, and Interest-bearing loans - carrying amounts approximate fair values
due to the relatively short-term maturities of these instruments.
Financial assets at 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 March 31, 2011 and December 31, 2010, 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 in 2011 and 2010.
24

Financial Risk Management Objectives and Policies
The Group’s principal financial instruments mainly comprise of short-term loans from
banks. The main purpose of these financial instruments is to raise funds for the Group’s
fulfillment or delivery of remittance transactions to beneficiaries. The Group also has
various other financial assets and liabilities such as cash and cash equivalents, accounts
receivables and accounts payable to beneficiaries, which arise directly from its
remittance operations.
The main risks arising from the Group’s financial instruments are credit risk, foreign
currency risk, cash flow interest rate risk, fair value interest rate risk and liquidity risk.
The BOD reviews and approves policies for managing each of these risks and these are
summarized below:
Credit Risk
Credit risk is the risk of loss resulting from the failure of a borrower or counterparty to
perform its obligations during the life of the transaction. This includes risk of nonpayment
by borrowers or issuers, failed settlement of transactions and default on
contracts.
The nature of its business exposes the Group to potential risk from difficulties in
recovering transaction money from foreign partners. Receivables from agents arise as a
result of its remittance operations in various regions of the globe. In order to address
this, the Group has maintained the following credit policies: (a) implement a contract that
incorporates a bond and advance payment cover such that the full amount of the
transaction will be credited to the Group prior to their delivery to the beneficiaries which
applies generally to all new agents of the Group and in certain cases to old agents; (b) all
foreign offices and agents must settle their accounts 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.
Receivables from agents and couriers are highly collectible and have a turnover ranging
from 1 to 5 days and 30 to 60 days, respectively. Other receivables, which include
advances to related parties, are also highly collectible and are due in less than one year.
There are no past due receivables as of March 31, 2011 and December 31, 2010. The
Group classifies its receivables as high grade. High grade financial assets includes
instruments with credit ratings of excellent, strong, good, or 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.
25

Foreign Currency Risk
Foreign currency risk is the risk to earnings or capital arising from changes in foreign
exchange rates. It is the Group’s policy that all daily foreign currencies, which arise as a
result of its remittance transactions, must be traded daily with bank partners only at
prevailing foreign exchange rates in the market. The daily closing foreign exchange
rates shall be the guiding rate in providing wholesale rates and retail rates to foreign
offices and agents, respectively. The trading proceeds will be used to pay out bank loans
and other obligations of the Group.
Cash Flow Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future
cash flows of financial instruments.
As of March 31, 2011 and December 31, 2010, the Group’s exposure to cash flow
interest rate risk is minimal. The Group’s policy is to manage its interest cost by entering
only into fixed rate short-term 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.
There is no impact on the Group’s equity other than those already affecting the profit or
loss.
Liquidity Risk
Liquidity or funding risk is the risk that an entity will encounter difficulty in raising funds to
meet commitments associated with financial instruments.
The 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.
26

Other Required Disclosures
PART II – OTHER INFORMATION
A. Accounting Policies and Methods of Computation.
The attached interim financial reports were prepared in accordance with the Philippine
Accounting Standards. The accounting policies and methods of computation followed in
these interim financial statements are the same compared with the audited financial
statements for the period ended December 31, 2010.
B. Unusual Items Affecting Assets, Liabilities, equity, net Income or Cash Flow.
Except as reported in the Management’s Discussion and Analysis of Financial Condition
and Results of Operations (“MD&A”), there were no unusual items affecting assets,
liabilities, equity, net income or cash flows for the interim period.
C. Changes in Estimates of Amounts Reported.
There were no material changes in estimates of amounts reported in prior periods that
have material effects in the current interim period.
D. Issuances, Repurchases and Repayments of Debt and Equity Securities.
Except as disclosed in the MD&A, there were no other issuances, repurchases and
repayments of debt and equity securities.
E. Material Events Subsequent to the End of the Interim Period Not Reflected in the
Financial Statements.
There were no material events that happened subsequent to March 31, 2011 up to the
date of this report that needs disclosure herein.
F. Changes in Composition of the Issuer During the Interim Period.
There were no changes in the composition of the Company during the interim period
such as business combination, acquisition or disposal of subsidiaries and long-term
investments, restructurings, and discontinuing operations except as disclosed in the
MD&A.
G. Changes in Contingent Liabilities or Contingent Assets.
There were no changes in contingent liabilities or contingent assets since December 31,
2010.
H. Material Contingencies and Any Other Events or Transactions.
There exist no material contingencies and other material events or transactions affecting
the current interim period except as disclosed in the MD&A.
27

MINUTES OF THE ANNUAL STOCKHOLDERS' MEETING OF
I-REMIT, INC.
23 July 2010, 8:00 a.m.
42 nd Floor Discovery Centre, 25 ADB Avenue
TOTAL NUMBER OF SHARES OUTSTANDING 533,088,000
TOTAL NUMBER OF SHARES PRESENT/REPRESENTED
AND ENTITLED TO VOTE 405,877,605
Members of the Board of Directors Present:
CALIXTO V. CHIKIAMCO
BANSAN C. CHOA
ARMIN V. DEMETILLO
GILBERT C. GAW
HARRIS D. JACILDO
JOSE JOEL Y. PUSTA
GREGORIO T. YU
A. BAYANI K. TAN
JOHN Y. TIU, JR.
CALL TO ORDER
The Chairman, Mr. Bansan C. Choa, called the meeting to order and presided over the
same. The Corporate Secretary, Ms. Nancy Joan M. Javier, recorded the minutes of the
proceedings.
CERTIFICATION OF NOTICE AND QUORUM
Upon the request of the Chairman, the Secretary certified that, based on the certification
issued by La Cresenta Manpower Services, notices of the meeting were sent to all stockholders of
record as of 25 July 2010 in accordance with the provisions of the By-Laws. The Chairman
instructed the Secretary to append the certificates of mailing of notices to the original minutes of
the meeting.
The Secretary certified that out of the 553,088,000 outstanding shares of stock of the
Corporation, there are present in person or by proxy, holders of 405,877,605 shares of stocks
entitled to vote, representing an attendance of 73.38% of the total subscribed capital of the
Corporation. Accordingly, the Secretary certified that a quorum existed for the transaction of
business at hand.
APPROVAL OF THE MINUTES OF THE
PREVIOUS STOCKHOLDERS' MEETING
Upon motion duly made and seconded, the reading of the minutes of the annual
stockholders' meeting held on 19 July 2009 was dispensed with and the same was approved as
previously circulated to the stockholders.
PRESIDENT’S REPORT AND
2009 FINANCIAL STATEMENTS
Mr. Harris D. Jacildo, the Corporation’s President and Chief Operating Officer, presented
his report for the year, a copy of which was filed with the Philippine Stock Exchange through
ODiSy.
Upon opening the floor for questions, a stockholder asked to be clarified on whether the
Social Security System (SSS) had representation in the Corporation’s Board since it held
approximately 12 million shares in the Corporation. The Chairman responded that the shares held
1

y SSS amounted to less than 3% of the equity and, thus, not enough to vote a director into the
Board. In any event, SSS has not communicated such plan.
Another stockholder inquired into whether the increase in the Corporation’s revenues in
2009 was the result of expansion or brought about by higher revenues from existing branches.
The Chairman responded that it was a combination of both, although most of it was due to the
expansion. However, he noted that revenues in some countries actually decreased due to the
repatriation of some overseas Filipino workers (OFWs) in Taiwan, and ban on the hiring of
OFWs in Lebanon and other Middle Eastern countries. The Chairman acknowledged that
expansion into new areas would lead to a temporary increase in the Corporation’s expenses.
However, from experience, most branches would meet the break-even point in less than two
years. In fact, there have been some instances when the branch started to post net income in as
early as six months.
A stockholder inquired as to why the Corporation maintains bank loans even as it actually
had a good cash position. The Chairman explained that the bank loans were maintained by the
Corporation to allow it to effect the delivery of money to the beneficiaries in the Philippines as it
is not possible to wait for the funds to be inwardly remitted. This enables the Corporation to
comply with its commitment to deliver fast service.
A stockholder also inquired into the proceeds of the initial public offering (IPO),
commenting that perhaps some of the proceeds may be used to buy back shares. The Chairman
stated that the proposal would not be possible based on the Corporation’s prospectus as the IPO
proceeds have already been allocated conformably with the use of funds as disclosed therein.
There being no other questions, upon motion duly made and seconded, the President’s
Report as well as the 2009 Audited Financial Statements of the Corporation and accompanying
notes thereto were noted and approved by the stockholders.
RATIFICATION OF ALL ACTS OF
THE BOARD OF DIRECTORS AND OFFICERS
Upon motion duly made and seconded, all acts of the Board of Directors, Officers, and
Management of the Corporation from the date of the last meeting of the stockholders up to the
present were, in all respects, confirmed, ratified, and approved.
ELECTION OF DIRECTORS
The Chairman noted that, as disclosed in the Information Statement previously furnished
to all stockholders, the Nomination Committee has endorsed the nomination of eleven (11)
stockholders to fill the eleven (11) seats in the Board of Directors.
In compliance with the requirements of Rule 38 of the Revised Implementing Rules of
the Securities Regulation Code, the Corporation's Nomination Committee, in its meeting on 12
February 2010, passed upon and endorsed the nominations of Messrs. Gregorio T. Yu and Jose
Joel Y. Pusta for election as independent directors of the Corporation.
Thereafter, the above nominations were duly seconded, and the following stockholders
were re-elected as directors of the Corporation for 2010-2011 or until their successors are elected
and duly qualified:
CALIXTO V. CHIKIAMCO
BANSAN C. CHOA
ARMIN V. DEMETILLO
GILBERT C. GAW
HARRIS D. JACILDO
JOSE JOEL Y. PUSTA
A. BAYANI K. TAN
JOHN Y. TIU, JR.
BEN C. TIU
RUBEN C. TIU
GREGORIO T. YU
2

APPOINTMENT OF EXTERNAL AUDITOR
As recommended by the Board of Directors, the stockholders voted for the renewal of the
auditing firm of SGV & Company as the Corporation’s external auditor. Upon motion duly made
and seconded, the following resolution was approved:
“RESOLVED, that the auditing firm of SGV & Company be reappointed
as the Corporation’s external auditor for the year 2010.”
OTHER MATTERS
The Chairman asked the body for any other matter that they wish to clarify or inquire
about. In response to a stockholder’s question whether the Corporation had any intention of
entering the US market, the Chairman stated that while the Corporation is financially robust
enough to do so, the current focus is to establish presence in countries that are not yet considered
as mature markets.
ADJOURNMENT
There being no other business to transact, the meeting was thereupon adjourned.
ATTESTED BY:
BANSAN C. CHOA
Chairman
NANCY JOAN M. JAVIER
Corporate Secretary
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RELEVANT RESOLUTIONS APPROVED BY THE BOARD OF DIRECTORS
MEETING OF THE BOARD OF DIRECTORS
August 27, 2010
(August 2010 to May 2011)
FOR RATIFICATION BY THE STOCKHOLDERS
Annex “F”
The Board of Directors authorized the Corporation to borrow money, arrange and negotiate with
ASIATRUST BANK for the grant of credit line facility, to secure trust receipts, to obtain other credit
facilities, to enter into and assume any financial undertaking with said bank, with or without security,
in the aggregate amount of PHILIPPINE PESOS: SEVENTY-FIVE MILLION (PHP75,000,000.00) or
the equivalent of said amount or any portion thereof in foreign currency.
The Board of Directors authorized the Corporation to obtain with UNITED COCONUT PLANTERS
BANK on accommodation in the form of a DOMESTIC BILLS PURCHASE/DOMESTIC BILLS
PURCHASE MANAGERS’ CHECK LINE in the aggregate principal amount of PHILIPPINE PESOS:
THREE MILLION (PHP3,000,000.00), as well as the temporary excesses or permanent increases
thereon as may be approved by said bank from time to time, under such terms and conditions as the
bank may require.
The Board of Directors authorized the Corporation to establish and open deposit account/s, whether
time, current, savings, money market placement and other types of deposit accounts in Philippine
Pesos and other foreign currencies with AUSTRALIA AND NEW ZEALAND BANKING GROUP
LIMITED – PHILIPPINES.
The Board of Directors authorized the Corporation to establish and open in its name US Dollar
deposit account/s, whether time, current, savings, money market placement and other types of
deposit accounts, with UNION BANK - EMERALD AVENUE BRANCH, for the account of Habib
Exchange Co. L.L.C and Deniba International Exchange L.L.C.
The Board of Directors approved the opening of bank accounts of INTERNATIONAL REMITTANCE
(CANADA) LTD. with CANADA IMPERIAL BANKING CORPORATION.
September 24, 2010
The Board of Directors authorized the Corporation to establish and open in its name deposit
account/s, whether time, current, savings, money market placement and other types of
deposit accounts, with STERLING BANK OF ASIA - EMERALD AVENUE BRANCH for
various tie-ups in the Middle East.
October 22, 2010
The Board of Directors agreed and undertakes to reimburse UNION BANK – EMERALD
AVENUE BRANCH for any and all amounts of money that may have been credited by said
bank to the Corporation’s accounts in the event that any of the checks purchased by the
bank were dishonored by the drawee banks thereof.
The Board of Directors authorized the Corporation to purchase a motor vehicle for the use of
AVP Mr. Glenn Igual.

November 19, 2010
The Board of Directors authorized the Corporation to borrow money, arrange and negotiate
with EASTWEST BANKING CORPORATION for the grant of credit line facility, to secure
trust receipts, to obtain other credit facilities, to enter into and assume any financial
undertaking with said bank, with or without security, in the aggregate amounts of
PHILIPPINE PESOS: THREE HUNDRED THIRTY MILLION (PHP330,000,000.00).
The Board of Directors authorized the Corporation to borrow money, arrange and negotiate
with SECURITY BANK for the grant of credit line facility, to secure trust receipts, to obtain
other credit facilities, to enter into and assume any financial undertaking with said bank, with
or without security, in the aggregate amounts of PHILIPPINE PESOS: THREE HUNDRED
MILLION (PHP300,000,000.00) and UNITED STATES DOLLARS: THREE MILLION FOUR
HUNDRED FIFTY THOUSAND (USD3,450,000.00).
The Board of Directors authorized the Corporation to borrow money, arrange and negotiate
with MAYBANK PHILIPPINES, INC. for the grant of credit line facility, to secure trust
receipts, to obtain other credit facilities, to enter into and assume any financial undertaking
with said bank, with or without security, in the aggregate amounts of PHILIPPINE PESOS:
ONE HUNDRED MILLION ONLY (PHP100,000,000.00) or the equivalent of said amount or
any portion thereof in foreign currency.
December 15, 2010 (Special Meeting)
The Board of Directors authorized the Corporation to grant I-REMIT EUROPE Remittance
Consulting AG, Austria a non-refundable shareholder’s contribution of ONE MILLION FIVE
HUNDRED THOUSAND EUROS (EUR 1,500,000.00) to be set-off against its receivables
from I-REMIT EUROPE Remittance Consulting AG, Austria on the one hand and with cash
deposit until March 12, 2010 on the other hand.
January 28, 2011
The Board of Directors authorized the Corporation to purchase a motor vehicle for the use of
Mr. Ronald Benito.
February 18, 2011
March 25, 2011
The Board of Directors authorized the Corporation to enter into a Memorandum of
Agreement with the Social Security System (“SSS”) as collecting agent for SSS premiums
and other payments.
The Board of Directors authorized the Corporation to establish and open deposit account/s,
whether time, current, savings, money market placement and other types of deposit
accounts in pound sterling (GBP) with BANK OF CHINA – MILAN BRANCH under the name
of IRemit Global Remittance Limited.
The Board of Directors authorized the Corporation to incorporate a stock corporation to be
organized and registered under the laws of Japan with the primary purpose of conducting
fund transfer and remittance service businesses of any form or kind of currencies or monies,
either by electronic, telegraphic, wire, or any other mode of transfer, and to procure the
necessary licenses, permits, and authorities to conduct the same.
The Board of Directors authorized the Corporation to apply and secure with the Hong Kong
Special Administrative Region the registration of and license to conduct a remittance
business in Hong Kong.
The Board of Directors authorized the Corporation to acquire additional equity in Worldwide
Exchange Pty Ltd of Australia equivalent to thirty-five percent (35%) of the current
outstanding capital of the Corporation.

April 15, 2011
May 20, 2011
The Board of Directors approved the Audited Financial Statements of the Corporation for the
year ending December 31, 2010 as prepared and submitted by its external auditor, SyCip
Gorres Velayo & Co.
The Board of Directors revoked the authority of Mr. Werner Eberdofer as representative of
the Corporation on all matters pertaining to IREMIT EUROPE Remittance Consulting AG.
The Board of Directors authorized Mr. Bansan C. Choa to represent the Corporation in all
matters pertaining to IREMIT EUROPE Remittance Consulting AG and to negotiate for and
on behalf of the Corporation, as well as to sign, execute, and deliver any and all documents,
resolutions, agreements, and contracts and vote on all matters that will require the vote of
the Corporation at any of the meetings of the Supervisory Board of IREMIT EUROPE
Remittance Consulting AG.
The Board of Directors approved the proposal to offer currency exchange services in its
branches in Hong Kong for the following currencies: Philippine Peso; United States Dollar;
Chinese Renminbi; and, Hong Kong Dollar.
The Board of Directors authorized the Corporation to file a claim with the Philippine Deposit
Insurance Corporation for payment of the Corporation’s insured deposits with Banco Filipino
under Savings Account Nos. 20-043-014228-7, 20-043-013790-7 and 20-043-013786-1.