SEC Form 20-IS - iRemit Global Remittance

•
1!I~lJllr
June 25, 2012
THE PHILIPPINE STOCK EXCHANGE, INC.
3rd Floor, Philippine Stock Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City, Metro Manila
Attention Ms. Janet A. Encarnacion
Head, Disclosure Department
Gentlemen:
www.myiremit.com
In accordance with the Securities Regulation Code, we are submitting herewith a
copy of SEC Form 20-IS (Preliminary Information Statement) of I-Remit, Inc. for
the Annual Stockholders' Meeting on July 31,2012.
Thank you.
~'ck-{7J/L
BER A. TTE CINDY C. TIU
First Vi e President & Chief Financial Officer
iRemil Inc.
26/F Discovery Centre, 25 ADS Avenue, Ortigas Center, Pasig City, 1605 Metro Manila, Philippines
Trunkline: (632) 706-9999

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. Maria Cecilia V. Soria (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.

IRE:lftlr
I-Remit, Inc.
TO: ALL STOCKHOLDERS
NOTICE OF ANNUAL STOKHOLDERS' MEETING
www.myiremit.com
NOTICE is hereby given that there will be an annual meeting of the stockholders of the
Corporation on Tuesday, July 31, 2012 at 8:00 in the morning at the 42nd Floor, Discovery
Centre,25 ADB Avenue, Ortigas Center, Pasig City, to consider the following:
AGENDA
I. Call to Order;
II. Proof of Notice of Meeting;
III. Certification of Quorum;
IV. Approval of the Minutes of the Previous Meeting of Stockholders;
V. Approval of 2011 Operations and Results;
VI. Ratification of All Acts of the Board of Directors and Officers;
VII. Election of Directors;
VIII. Appointment of SyCip Gorres Velayo & Co. as External Auditors;
IX. Other Matters;
X. Adjournment.
In accordance with the rules of the Philippine Stock Exchange, Inc., the close of business
on July 6,2012 has been fixed as the record date for the determination of the stockholders entitled
to notice of such meeting and any adjournment thereof, and to attend and vote thereat.
Registration for those who are personally attending the meeting will start at 7:30 a.m. and
end promptly at 8:00 a.m. All stockholders who will not, are unable, or do not expect to attend the
meeting in person, but would wish to be represented thereat, are encouraged to fill out, date, sign,
and send a proxy to the Corporation at 2704 East Tower, PSE Centre, Exchange Road, Ortigas
Center, Pasig City, Metro Manila. All proxies should be received by the Corporation on or before
Monday, July 23, 2011. The proxies submitted shall be validated by a Committee of Inspectors at
the Corporation's offices at 3:00 in the afternoon of Tuesday, July 24, 2012.
To avoid inconvenience in registering your attendance at the meeting, you are or your
proxy is requested to bring identification paper(s) containing a photograph and signature, e.g.,
passport, driver's license, or credit card.
Pasig City, Metro Manila, June 25,2012.
26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City 1605 Philippines
Telephone: (632) 706-9999 and (632) 706-2737
Facsimile: (632) 706-2767

1.
2.
3.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 20-IS
INFORMATION STATEMENT PURSUANT T ~ECTio f ref 0 ~~,'
OF THE SECURITIES REGULATIO CODE " ~ v ~
r-' "C~ c: C::1DC\"OQ~\
Check the appropriate box: \ \ I "~2012 \. \\
1"1 Preliminary Information Statement IIr.: 1\ ~UN 25 ." ._ U
I 1 Definitive Information Statement \ > ., '''. t ."'f>' '-t', U
I ;' T ,-' . II 1 \...1
U \. ..~._~~, \... .,/~,-- L..
Name of Registrant as specified in its charter I-REMIT. I~C.n _ ___ TIME ---
Province, country or other jurisdiction of incorporation or orgamzatio
Metro Manila. PHILIPPINES
4. SEC Identification Number A200101631
5. SIR Tax Identification Number 210-407-466-000
6. Address of Principal Office
26/F Discovery Centre. 25 ADB Avenue. Ortigas Center, Pasig City
Postal Code
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
Time
Venue
July 31,2012
8:00a.m.
42"d 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 9, 2012
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
Common Stock, Par Value PHP 1.00
11. Are any or all of Registrant's securities listed on a Stock Exchange
1"1 Yes I 1 No
Number of Shares of Common Stock
Outstanding (as of May 31,2012)
602,729,800
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

GENERAL INFORMATION
Date, time and place of meeting of security holders:
Date : July 31, 2012
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 9, 2012.
Dissenters’ Right of Appraisal
The matters to be voted upon in the Annual Stockholders’ Meeting of I-Remit, Inc. (hereinafter, the
“Company”) on July 31, 2012 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 2012 –
2013;
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.
2

Voting Securities and Principal Holders Thereof
CONTROL AND COMPENSATION INFORMATION
A. As of May 31, 2012, the Company has 602,729,800 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 31, 2012 is set on July 6, 2012.
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, 2012, 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
3
Name and
Address of
Beneficial Owner
and Relationship
with Record
Number of Per Cent
Owner Citizenship Shares Held
(Please see Note
below)
Filipino 240,706,388 38.9665%
Same as Record
Owner
Same as Record
Owner
Same as Record
Owner
Filipino 174,260,047 28.2099%
Filipino 134,248,290 21.7327%
Filipino 47,771,295 7.7334%

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
4
Number of
Shares Per cent Held
146,777,994 23.7610%
* 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 68,839,952 shares lodged by JTKC Equities, Inc.; thus, the latter’s total
shareholdings is 116,611,247 representing 18.8775% 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, 2012:
Number
Nature of
Legal and
Beneficial
Per Cent
Class Name of Beneficial Owner of Shares Ownership Citizenship of Class
Common Bansan C. Choa
855,800
550,000
Direct
Indirect
Filipino
0.13854%
0.08904%
Common Harris Edsel D. Jacildo 111,930 Direct Filipino 0.01812%
Common Armin V. Demetillo 55,110 Direct Filipino 0.00892%
Common Calixto V. Chikiamco 110 Direct Filipino 0.00002%
Common Gilbert C. Gaw 902,764 Direct Filipino 0.14614%
Common Jose Joel Y. Pusta 110 Direct Filipino 0.00002%
Common A. Bayani K. Tan 573,044 Direct Filipino 0.09277%
Common Ben C. Tiu 1,199,033 Direct Filipino 0.19410%
Common Ruben C. Tiu 416,856 Direct Filipino 0.06748%
Common John Y. Tiu, Jr. 166,419 Direct Filipino 0.02694%
Common Gregorio T. Yu 110 Direct Filipino 0.00002%
Common Bernadette Cindy C. Tiu
154,990
466,950
Direct
Indirect
Filipino
0.02509%
0.07559%
(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 58 Director; Chairman & Chief Executive Officer Aug 2002 to date
Harris Edsel D. Jacildo 50 Director; President & Chief Operating Officer Aug 2002 to date
Armin V. Demetillo 43 Director and Chairman, Executive Committee July 2009 to date
Gregorio T. Yu 53 Independent Director and Chairman, Audit Committee May 2007 to date
Jose Joel Y. Pusta 59 Independent Director Aug 2002 to date
Calixto V. Chikiamco 62 Director Aug 2002 to date
Gilbert C. Gaw 62 Director Aug 2002 to date
A. Bayani K. Tan 56 Director May 2007 to date
Ben C. Tiu 60 Director May 2001 to date
John Y. Tiu, Jr. 35 Director Aug 2002 to date
Ruben C. Tiu, Jr. 55 Director May 2007 to date
Maria Cecilia V. Soria 35 Corporate Secretary July 2011 to date
Darlene R. Vivas 29 Assistant Corporate Secretary July 2011 to date
Ma. Elizabeth G. Yao 42 Senior Vice President Aug 2002 to date
Ronald A. Benito 42 Senior Vice President Nov 2010 to date
Bernadette Cindy C. Tiu 33 First Vice President & Chief Financial Officer Apr 2005 to date
Fitzgerald S. Duba 48 First Vice President & Compliance Officer Nov 2007 to date
Glenn L. Igual 50 Vice President Dec 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
2012 – 2013, 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 since 2005 and has been a Director since
2002. He is involved in various businesses in the manufacturing, and construction and property development
sectors. He currently holds the following positions: Chairman, Confed Properties, Inc. (1991 to date);
Chairman, Surewell Equities, Inc. (2001 to date); Director, Sterling Bank of Asia, Inc. (A Savings Bank) (2007
to date); Board Member, Professional Regulation Commission of Real Estate Service (2010 to date);
President, Philippine Retirement, Inc. (2009 to date) Treasurer, Six Alps Corporation (1997 to date); Treasurer,
Banwood Contruction Center, Inc. (1976 to date); Chairman, Flexi Woodworks, Inc. (1993 to date), Chairman,
Sure Fortune Properties, Inc. (2001 to date), Chairman, OLGC Psychological Services (2001 to date);
Chairman, Lucky Star Management, Ltd. (Hong Kong) (2001 to date); Chairman, Surewell Enterprise Ltd.
(Hong Kong) (1998 to date); Chairman, Surewell Equities (Singapore) Pte. Ltd. (2001 to date).
Mr. Choa is a licensed real estate broker (Professional Regulation Commission License No. 00002), appraiser
(Professional Regulation Commission License No. 00002), and real estate consultant (Professional Regulation
Commission License No. 00002). He is a certified public accountant (Professional Regulation Commission
License No. 030924). He is active in the real property development and property management field and has
served and continues to hold board and officer positions in housing and real property development
organizations including the Organization of Socialized Housing Developers as Vice President (2001 to 2008),
President(2008 to 2009) and Board Member (2010); Subdivision and Housing Developers Association as First
Vice President (2008), Chairman (2004), Board Governor (2000 to 2010), and Board Advisor (2011 to date).
He is also the Chairman of the Board of Trustees of Kassel Condominium Corporation (2001 to date).
He was one of the finalists of the 2006 Entrepreneur of the Year award of the Ernst & Young global accounting
firm. He is a nominee for Global Filipino Executive of the Year in the 2011 Asia CEO Awards Philippines. 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.
5

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 and the President and Chief Operating Officer of the Company since April 2003. He also
currently holds the following positions: Director, Sterling Bank of Asia, Inc. (A Savings Bank) (2006 to date);
Director, Lucky Star Management Ltd. (Hong Kong) (2003 to date); Director, Iremit Global Remittance Ltd.
(United Kingdom) (2003 to date); Director, I-Remit Australia Pty Ltd (2002 to date).
He is also a Trustee of the Kabalikat ng Migranteng Pilipino, Inc. (KAMPI) (2006 to date), a non-stock 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, Inc., he spent 20 years in the banking industry where he was initially working in the
field of information technology while employed by the Pacific Banking Corporation (1982 – 1985). In 1985, he
joined the remittance division of the Rizal Commercial Banking Corporation (RCBC) where he was a Systems
Analyst until 1991 and was the head of its TeleMoney Asia-Pacific operations until 2002.
Mr. Jacildo obtained his bachelor of science degree in applied economics from the De La Salle University in
1982. He also completed the basic management program of the Asian Institute of Management in 1991.
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). He became the Faculty Member/Academic Counselor in the College of
Business and Economics, De La Salle University (1992 to 2002).
Mr. Demetillo obtained his bachelor of arts degree, major in philosophy cum laude from the Saint Joseph
Seminary College in 1990.
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. (A Savings Bank) (2006 to date) and Chairman and President of Lucky Star
Network Communications Corporation (1994 to date). He is also concurrently a Director of the following
companies: National Reinsurance Corporation, (2011 to date); iRipple, Inc. (2010 to date); Jupiter Systems,
Inc. (2001 to date); Wordtext Systems, Inc. (2001 to date); Yehey, Inc. (2001 to date); Philequity Fund, Inc.
(1994 to date) Philequity PSE Index Fund, Inc. (1999 to date); Philequity Dollar Income Fund, Inc. (1999 to
date); Philippine Airlines (2011 to date); Unistar (2011 to date); Glyph Studios, Inc. (2012); Philequity Peso
Bond Fund, Inc.; Philequity Strategic Growth Fund, Inc.; Philequity Foreign Currency Fixed Income Fund, Inc.;
Philequity Balanced Fund; and Philequity Resources Fund, Inc. Mr. Yu is also a Trustee of the Government
Service Insurance System (2010 to date). He is also a Board Member of Ballet Philippines (2009 to date) and
Manila Symphony Orchestra (2009 to date), and a Trustee of the Xavier School, Inc. (1998 to date) and a
Trustee and the Chairman, Ways and Means Committee of the Xavier School Educational and Trust Fund,
Inc. (1998 to date).
Mr. Yu was formerly the President and Chief Executive Officer of Belle Corporation (1989 – 2001). He was
also a Director and a Member of the Executive Committee of The International Exchange Bank (1995 – 2006).
He was also a Director of the following companies: Nexus Technologies, Inc. (2001 – 2011); R.S. Lim & Co.,
Inc. (1997- 2008); and Ivantage Corporation (1993 – 2006). He was also the President of the following
organizations: Tagaytay Highlands International Golf Club (1991 – 2001); President, The Country Club and
Tagaytay Highlands (1995 – 2001). He was also the President and Chief Executive Officer of Sinophil
Corporation (1993 – 2001) and Pacific Online Systems Corporation (1994 – 2001).
6

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.
He was also the Assistant Vice President of R.S. Lim and Company, Inc. from 1978 to 1981 and a Lecturer in
Economics at Dela Salle University from 1978 to 1980.
Mr. Yu obtained his Master of Business Administration degree from The Wharton School, Graduate of the
University of Pennsylvania in 1983. He obtained his bachelor of arts degree in economics summa cum laude
from the De La Salle University in 1978.
Jose Joel Y. Pusta
Mr. Pusta has been a Director of I-Remit, Inc. 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), the President and a Trustee of the Kassel Condominium
Corporation (2002 to 2009) and the Vice President and Financial Controller of Green Bank, Inc. (A Rural Bank)
(2010-2011).
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, Inc. since 2002. He is a former columnist of the Manila
Standard and the Manila Times. He has authored two (2) books: “Reforming the System” (Orange
Publications and Kalikasan Press, 1992) and “Why We Are Who We Are” (Foundation for Economic Freedom,
1998). In 2001, he was awarded by the Archdiocese of Manila for the Best Business Column (“Agriculture,
Not IT”, Manila Standard) in the Catholic Mass Media Awards. He is the founder and CEO of Mobilemoco,
Inc.; founder and president of MRM Studios, Inc., a company involved in mobile entertainment, digital musical
services, and e-commerce (2001 to date). He also concurrently holds the following positions: Director, UPCC
Securities (1999 to date); Vice Chairman, CBY, Inc. (1999 to date); Director, Golden Sunrise (1984 to date);
Director, APMC (1985 to date); Director, Foundation for Economic Freedom (1996 to date). He is also involved
in several professional and civic organizations such as the Foundation for Economic Freedom where he is the
President. He is also presently a columnist of Business World and a property rights consultant to the Asia
Foundation. He is a member of the Philippine Internet Commerce Society and the Syracuse University Alumni
Association.
Mr. Chikiamco holds a master’s degree in professional studies in media administration from the Syracuse
University (New York, USA). He obtained his bachelor’s degree in economics summa cum laude from the De
La Salle University.
Gilbert C. Gaw
Mr. Gaw has been a Director of I-Remit, Inc. since 2002. He is a business engaged in steel manufacturing.
He is currently a partner of JPSA Global Services (2003 to date), and a Director of Treasure Steelworks
Corporation (2004 to date) and Zhangzhou Stronghold Steel Works Co., Ltd. (China) (2003 to date).
He obtained his bachelor of science degree in electronics and communications engineering from the University
of the East in 1973.
A. Bayani K. Tan
Atty. Tan was the Corporate Secretary of I-Remit, Inc. 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).
7

Mr. Tan has also been the Corporate Secretary and a Director of Sterling Bank of Asia, Inc. (A Savings Bank)
(2007 to date); FHE Properties, Inc. (1995 to date); Club Asia, Inc. (1999 to date). He is also a Director for the
following private companies: Highlands Gourmet Specialist Corp. (2006 to date); Destiny LendFund, Inc.
(2005 to date); and City Cane Corporation (1993 to date).
He is the Corporate Secretary of the following companies: Belle Corporation (1994 to date); Pacific Online
Systems Corporation (2007 to date); Vantage Equities, Inc. (1993 to date); Yehey! Corporation (2004 to date);
Philequity Fund, Inc. (1997 to date); Philequity Peso Bond Fund, Inc. (2000 to date); Philequity Dollar Income
Fund, Inc. (1999 to date); Philequity PSE Index Fund, Inc. (1999 to date); HSAI-Raintree, Inc. (1999 to date);
Tagaytay Midlands Golf Club, Inc. (1997 to date); The Country Club at Tagaytay Highlands, Inc. (1995 to
date); The Spa and Lodge at Tagaytay Highlands, Inc. (1999 to date); Monte Oro Grid Resources Corp. (2006
to date); E-Business Services, Inc. (2001 to date); Hella-Phil., Inc. (1992 to date); JTKC Equities, Inc. (1998 to
date); Goodyear Steel Pipe Corporation (1999 to date); Star Equities Inc. (2006 to date); Tera Investments,
Inc. (2001 to date); The Discovery Leisure Company, Inc. (2001 to date); Touch Solutions, Inc. (2007 to date);
and Karen Marie L. Ty Foundation, Inc. (1995 to date).
He is a Trustee and the Corporate Secretary of Wellington Dee Ty Foundation, Inc. (2004 to date). He is also
a Trustee (2004 to date) and currently is the Executive Vice President of UP Law ’80 Foundation, Inc.
Atty. Tan is also the Managing Partner of the law firm of Tan Venturanza Valdez. He also concurrently holds
the following positions: Managing Director, Shamrock Development Corporation (1988 to date); Trustee, SC
Tan Foundation, Inc. (1986 to date); and Legal Counsel, Xavier School, Inc. (2005 to date). He is also a
lecturer in Center for Global Practices (2009 to date).
In the last five years, he has held the following positions: Director, Monte Oro Resources and Energy, Inc.
(2005 – 2008); Director, Philequity Fund, Inc. (1997 – 2007); Director, Philequity Peso Bond Fund, Inc. (2000 –
2007); Director, Philequity Dollar Income Fund, Inc. (1999 – 2007); Director, Philequity PSE Index Fund, Inc.
(1999 – 2007); Director, APC Group, Inc. (1996 – 2006); Director, Metro Manila Turf Club, Inc. (1995 – 2006);
Corporate Secretary, International Exchange Bank (1995 – 2006).
Atty. Tan holds a Master of Laws degree from New York University, USA (class of 1988). He obtained his
Bachelor of Laws degree from the University of the Philippines in 1980 where he was a member of the Order
of the Purple Feather (the UP College of Law Honor Society) having ranked ninth in his class. Atty. Tan was
admitted to the Philippine Bar in 1981 after placing sixth in the examinations. He also has a Bachelor of Arts
Degree (Majored in Political Science) from San Beda College (class of 1976) from where he graduated class
valedictorian and was awarded the medal for academic excellence.
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.
8

John Y. Tiu, Jr.
Mr. John Tiu has served as Director of I-Remit, Inc. since 2002. He is also presently Chairman and President
of Tera Investments, Inc. (2003 to date); and a Director of Sterling Bank of Asia, Inc. (A Savings Bank) (2007
to date). He is also the Director and Treasurer of the following companies: Star Equities Inc. (2006 to date);
Touch Solutions, Inc. (2001 to date); JTKC Equities, Inc. (2003 to date); JTKC Land, Inc. (2003 to date); The
Discovery Leisure Company, Inc. (2001 to date); Cay Islands Corporation; Palawan Cove Corporation;
Sonoran Corporation; Tofino Corporation; Discovery Country Suites, Inc. (2004 to date). He is a Director of
Oakridge Properties, Inc. (2003 to date), Enderun Colleges, Inc., JT Perle Corporation, One Cerrada
Corporation, Sagesoft Solutions, Inc. and Tokyo Holdings, Inc. He is a Director and President of Southern
Visayas Property Holdings, Inc. (2003 to date), Director and First Vice President of JTKC Realty Corporation
(2005 to date) and the President of Fidelity Securities, Inc. (2002 to date).
Mr. John Tiu obtained his bachelor of science in electrical engineering degree (minor in mathematics) from the
University of Washington, USA in 1998.
Ruben C. Tiu
Mr. Ruben Tiu has served as Director of I-Remit, Inc. from 2002 to 2004 and was reappointed as such on May
18, 2007. He currently holds the following positions: Director, Sterling Bank of Asia, Inc. (A Savings Bank)
(2007 to date); Director, Star Equities Inc. (2006 to date); Director Tera Investments, Inc. (2001 to date);
President, JTKC Realty Corporation (1988 to date); President, Pan-Asean Multi Resources Corporation (1988
to date); President, Aldex Realty Corporation (1988 to date); President, Oakridge Properties, Inc. (1996 to
date); Executive Vice President, JTKC Equities, Inc. (1993 to date).
Mr. Ruben Tiu obtained his bachelor of science in business administration degree from the De La Salle
University in 1976.
Maria Cecilia V. Soria
Atty. Atty. Soria is the incumbent Corporate Secretary of I-Remit, Inc. She is also the Assistant Corporate
Secretary of the following companies: Sterling Bank of Asia, Inc. (A Savings Bank), E-Business Services Inc.,
FHE Properties Inc., Highlands Gourmet, iRipple, Inc., Philequity Management, Inc., Touch Solutions, Inc.,
and JTKC Equities, Inc. She obtained her Bachelor of Arts degree in Political Science and Bachelor of Laws
degree from the University of the Philippines in 1998 and 2006, respectively. She is currently an associate of
Tan Venturanza Valdez (2010 to date). She was formerly connected with Reyes-Fajardo & Associates (2009
– 2010), SGV & Co. (a member practice of Ernst & Young) (2008 – 2009), and Medialdea Ata Bello &
Guevarra law office (2007 – 2008). She was admitted to the Philippine bar in May 2007.
Darlene R. Vivas
Atty. Vivas is the incumbent Assistant Corporate Secretary of I-Remit, Inc. She is also the Assistant Corporate
Secretary of the following companies: Jolliville Holdings Corporation; The Country Club at Tagaytay Highlands,
Inc.; and Tagaytay Midlands Golf Club Inc. She obtained her bachelor of arts degree in political science from
the University of the Philippines and bachelor of laws degree from San Beda College of Law in 2003 and 2009,
respectively. She is currently an associate of Tan Venturanza Valdez (2011 to date). She was formerly
connected with Pizarras & Associates (2009 – 2010) and Santos Parungao Aquino Abejo & Santos law office
(2010). She was admitted into the Philippine bar in May 2010.
Ma. Elizabeth G. Yao
Ms. Yao joined I-Remit, Inc. 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.
9

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.
Bernadette Cindy C. Tiu
Ms. Tiu has been the Chief Financial Officer of I-Remit, Inc. 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 is a member of the Board of Trustees of Kabalikat
ng Migranteng Pilipino, Inc. (KAMPI), a non-stock non-profit organization serving overseas Filipino workers
(2012).
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 joined I-Remit, Inc. in 2007 and is currently a First Vice President and the Company’s Compliance
Officer. He was a Vice President and the head of the Corporate Strategy Division of the Rizal Commercial
Banking Corporation (RCBC) from 2002 to 2005, where he was employed for 12 years. He was also a
management consultant in the Management Services Division of SyCip Gorres Velayo & Co (SGV) and later,
the Manila office of Andersen Consulting.
He obtained his bachelor’s degree in industrial engineering from the University of the Philippines in 1987 and
completed the basic banking course of the Asian Institute of Management in 1996. He also completed the
corporate governance seminar of the Bangko Sentral ng Pilipinas (BSP) in 2000. He is a member of the
Philippine Institute of Industrial Engineers.
Glenn L. Igual
Mr. Igual joined I-Remit, Inc. in 2010 and currently heads the Company’s Information and Technology Services
Division in charge of Software solutioning and IT Infrastructure setup and management. He was previously
connected with Ayala Systems Technology Inc. as General Manager for Trusted Hub Ltd’s Philippine business
unit (2009 – 2010), and was the Corporate Secretary and a Director of Saffron Hill Phils., Inc. (2005 – 2010).
He was formerly the Vice President of Information Technology Services of United Coconut Planters Life
Assurance Corp. (2004 – 2008). He is also a Founder/Director of Cabana Fresh Moves Inc. (2008 to date).
He obtained his bachelor of arts degree in computer management from the Polytechnic University of the
Philippines in 1983. He completed his Strategic Business Economics Program in the University of Asia and
the Pacific in 2004. He obtained his Fellow, Life Management Institute (FLMI) designation in 2003 from the
Life Office Management Association (LOMA) in Atlanta, Georgia, a USA-based continuing education program
and his IT Infrastructure Library (ITIL) certification in 2009.
10

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.
The nominees for election to the Board of Directors are as follows:
• Calixto V. Chikiamco
• Bansan C. Choa
• Armin V. Demetillo
• Gilbert C. Gaw
• Harris Edsel D. Jacildo
• Jose Joel Y. Pusta
• A. Bayani K. Tan
• Ben C. Tiu
• John Y. Tiu, Jr.
• Ruben C. Tiu
• Gregorio T. Yu
The nominees for election as independent directors of the Board of Directors are as follows:
• Jose Joel Y. Pusta
• Gregorio T. Yu
On June 22, 2012, 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 Ms. Mary Jean J. Ocan and Mr. Jose Joel
Y. Pusta by Mr. Eliodoro M. Alcain, Jr. Except as co-stockholders of the Company, the nominees Messrs. Yu
and Pusta are not related to the respective persons nominating them, Ms. Ocan and Mr. Alcain, respectively.
Copies of the certifications of qualifications of independent directors dated August 1 and 12, 2011 are attached
as Annexes “B” and “B-1” and those dated June 25, 2012 are attached as Annexes “B-2” and “B-3”.
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.
11

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.
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
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:
12

(a) Delivery fees earned from clients of associates are as follows:
2011 2010 2009
Hwa Kung Hong & Co., Ltd. (HKHCL) P=46,127,251 P=33,202,567 P=25,364,567
IRemit Singapore Pte Ltd (ISPL) 24,463,777 25,080,948 27,016,303
P=70,591,028 P=58,283,515 P=52,380,870
(b) The Parent Company, as Lessor, entered into four (4) Lease Agreements (please refer to Properties),
covering its occupancy of its offices at the 25 th , 26 th and 27 th floors of the Discovery Center, at No. 25 ADB
Avenue, Ortigas Center, Pasig City, with Oakridge Properties, Inc., a related party by virtue of JTKC
Equities, Inc.’s ownership of the Discovery Leisure Company, Inc. which in turn owns Oakridge
Properties, Inc. Rent expense amounted to PHP 9.96 million, PHP 9.25 million and PHP 8.17 million in
2011, 2010, and 2009, respectively.
(c) I-Remit, Inc. has office sharing arrangements with Surewell Equities Pte. Ltd. in Singapore for an initial
term of two (2) years. Mr. Bansan C. Choa, Chairman and Chief Executive Officer, is a shareholder in
said company. Rent expense amounted to PHP 0.90 million in 2011.
(d) The Parent Company maintains deposit accounts with the Sterling Bank of Asia, Inc. (A Savings Bank)
amounting to PHP118.6 million and PHP129.7 million as of December 31, 2011 and 2010, respectively.
These deposits earned PHP0.43 million, PHP1.12 million and PHP1.16 million interest income in 2011,
2010 and 2009, respectively. In 2011 and 2010, the Company has funded its retirement plan amounting
to PHP 6.9 million and PHP 5.2 million, respectively, and maintained with Sterling Bank of Asia, Inc. (A
Savings Bank). The said bank’s majority shareholders are: JTKC Equities, Inc., Surewell Equities, Inc.
and Star Equities Inc.
In the normal course of doing business, there were occasions when the stockholders would be advancing
funds for working capital requirements of the Company. Reciprocally, there would also be occasions when the
Company would have excess funds and would employ these to advance funds to some of its affiliates, payable
on demand. In prior years, advances were made to foreign offices which, as these still in the process of
starting their commercial operations, were then owned by the stockholders or associates or companies owned
by the stockholders. The funds were then used either as working capital, to maintain cash balances in bank
accounts or for provision of cash bonds. Presently, these foreign offices are either subsidiaries or affiliates of
I-Remit, Inc.
Further to the Company’s usual course of business, it also advances funds to its subsidiaries, associates, and
affiliates. These are accounts receivable from subsidiaries, associates, and affiliates pertaining to remittance
transactions. These also consist of advances made to subsidiaries, associates, and affiliates for working
capital to maintain cash balances in bank accounts and to cover other financial and operating requirements.
The receivables are usually settled on the next banking day. On the other hand, advances made to cover
financial and operating requirements are due on demand.
In addition to the related information disclosed elsewhere in the consolidated financial statements, the
following are the yearend balances in respect of transactions with related parties which were carried in terms
that prevail in arm’s length transactions during the year:
2011 2010
Due from related parties - Associates:
IRemit Singapore Pte Ltd (ISPL) P=16,034,603 P=16,104,921
Hwa Kung Hong & Co., Ltd. (HKHCL) 8,986,123 10,888,056
P=25,020,726 P=26,992,977
Due to related parties – Directors: P=- P=1,431,156
Advances to associates pertain to unpaid delivery fees. These are non-interest bearing and are due on
demand.
Advances to directors are non-interest bearing and are due on demand.
As of December 31, 2011 and 2010, no provision for credit losses has been recognized for the amounts due
from related parties.
In 2010, the Parent Company recognized dividend income amounting PHP0.6 million from dividends declared
by IRemit Singapore Pte Ltd. In 2009, the Parent Company’s dividend income includes dividends declared by
IRemit Singapore Pte Ltd (PHP14.40 million), International Remittance (Canada) Ltd. (PHP9.54 million),
Worldwide Exchange Pty Ltd (PHP3.93 million), I-Remit Australia Pty Ltd (PHP3.30 million) and Power Star
Asia Group Limited (PHP3.07 million).
13

The compensation of the key management personnel of the Group in 2011, 2010 and 2009 are as follows:
2011 2010 2009
Short-term employee benefits P=27,036,984 P=21,059,431 P=19,232,031
Post-employment benefits 1,571,444 549,541 721,632
Share-based payment – – 435,303
P=28,608,428 P=21,608,972 P=20,388,966
The law firm of Tan Venturanza Valdez is among the firms engaged by the Company to render legal services.
Atty. A. Bayani K. Tan, a Director of the Company, is a managing partner of this firm while Atty. Maria Cecilia
V. Soria, the current Corporate Secretary, and Atty. Darlene R. Vivas, Assistant Corporate Secretary, are
associates. During the year, the Company paid Tan Venturanza Valdez certain legal fees that the Company
believes to be reasonable for the services rendered.
Except as disclosed above, there are no transactions or arrangements with parties that fall outside of the
definition of “related parties” under SFAS/IAS No. 24 but with whom the registrant or its related parties have or
has had relationships with.
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.
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
2012
(Estimate)
2011
(Actual)
2010
(Actual)
Harris E. D. Jacildo President & COO
Ma. Elizabeth G. Yao SVP
Ronald A. Benito SVP
Bernadette Cindy C. Tiu FVP & CFO
14
P=9,351,421.64
All other officers and directors as a group unnamed P=10,444,171.05
Bansan C. Choa Chairman & CEO
Harris E. D. Jacildo President & COO
Ma. Elizabeth G. Yao SVP
P=8,658,723.75
Ronald A. Benito SVP
Bernadette Cindy C. Tiu FVP & CFO
All other officers and directors as a group unnamed P=9,593,788.01
Bansan C. Choa Chairman & CEO
Harris E. D. Jacildo President & COO
Ma. Elizabeth G. Yao SVP
P=8,658,723.75
Ronald A. Benito SVP
Bernadette Cindy C. Tiu FVP & CFO
All other officers and directors as a group unnamed P=9,593,788.01
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 2012 – 2013. 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
15
PHP577,500.00
(exclusive of VAT)
PHP 550,000.00
(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 one peso (PHP 1.00) 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, was taken from its unissued
capital stock. Pursuant to the provisions of the Corporation Code, the aforementioned stock dividend
declaration was submitted for stockholders’ approval during their annual meeting on July 29, 2011. On
September 6, 2011, the PSE approved the listing of additional 55,308,800 common shares to cover said stock
dividend declaration. On September 08, 2011, the stock dividend was paid to all of the Company’s
stockholders of record as of August 15, 2011.
16

OTHER MATTERS
Action with Respect to Reports
The Company will seek the stockholders’ approval of the Minutes of the 2011 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 2011 Financial Statements; (v)
Ratification of All Acts and Resolutions of the Board of Directors, Officers and Management of the Company;
(vi) Election of Directors; and (vii) Appointment of SGV & Co. as External Auditors.
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 29, 2011 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.
17

SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, we certify that the information set forth in
this report is true, complete and correct.
By:
I-REMIT, INC.
June 25, 2012
E CINDY C. TIU
esident & Chief Financial Officer
ch
18

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, with Certificate Number FX-2005-000364
issued by the BSP on May 10, 2005, and supervised by the BSP. It is 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 Republic Act No.10167) and The Terrorism
Financing Prevention and Suppression Act of 2012 (Republic Act No. 10168), and their implementing rules
and regulations.
I-Remit, Inc. has been registered as a remittance network provider with the Australian Transaction Reports
and Analysis Centre effective April 13, 2012, with Registration Number RNP100035640-001.
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 24 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, Inc., establishing its operations in three (3) major provinces
in Canada, namely: British Columbia, Alberta and Ontario. In 2005, I-Remit, Inc. 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. It is registered as a
money service business with the Financial Transactions and Reports Analysis Centre of Canada, with
registration number M08160706.
19

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, Inc.’s subsidiary and tie-ups in Australia deposit the remittances that they receive for
the purpose of eventually transferring the accumulated balance to I-Remit, Inc.’s bank account in the
Philippines.
IREMIT Remittance Consulting GmbH, a wholly-owned subsidiary, was incorporated on July 20, 2005 in
Vienna, Austria, as IREMIT EUROPE Remittance Consulting AG (74.9% owned). It was granted a remittance
license on July 25, 2007 by the Financial Monetary Authority of 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. On April 28, 2011, IREMIT EUROPE Remittance Consulting AG stopped its money
remittance operations in Rome and Milan in Italy in accordance with Article 75 of the Transitional and Final
Provisions of Austrian Payment Services Act, which stipulated that credit institutions that have held
authorizations pursuant to Article 1 paragraph 1 no 23 BWG, as amended by the Federal Act Federal Law
Gazette No. 35/2003, prior to December 25, 2009, have only until April 30, 2011 to carry out their money
remittance operations. On May 5, 2011, the Parent Company acquired the 25.1% ownership interest in
IREMIT EUROPE Remittance Consulting AG from the noncontrolling stockholder. The acquisition increased
the Parent Company’s ownership interest in IREMIT EUROPE Remittance Consulting AG to 100.0% from
74.9%. Consequently, on October 11, 2011, IREMIT EUROPE Remittance Consulting AG changed its legal
name to IREMIT Remittance Consulting GmbH and changed its legal status from a stock company to a limited
liability company. It also amended its Articles of Incorporation to include management consultancy in its
business activities. In December 2011, IREMIT Remittance Consulting GmbH sold assets relating to its
operations in Italy to a third party. These assets, with an aggregate carrying amount of PHP 7.29 million, were
sold for a consideration of PHP 72.43 million thereby resulting to a gain on sale of PHP 65.14 million.
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, Inc. repurchased it on June 29, 2007 and acquired 100% ownership
interest. The Financial Services Authority has granted IRemit Global Remittance Limited the authorization to
operate the money remittance business, with Firm Reference Number 537568, effective April 15, 2011 under
the Payment Services Regulations 2009, the transposition into English law of the European Union (EU)
Payment Services Directive (2007/64/EC) that is applicable in all EU and European Economic Area countries.
As an authorized institution, it operates branches in Rome and Milan in Italy and has also received approval to
operate a branch in Ireland. It has agents in the United Kingdom, Germany and Austria. It is also registered
with Her Majesty’s Customs and Excise with Money Laundering Registration Number 12130185. Filipinos are
the fourth largest source of immigrants to the United Kingdom. There are approximately 200,000 Filipinos
living and working in the United Kingdom as nurses, caregivers in public and private nursing homes, medical
professionals and chambermaids. 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.
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.
K.K. I-Remit Japan, a wholly-owned subsidiary was incorporated on June 10, 2011. The Kanto Local Finance
Bureau approved its registration as a Funds Transfer Company effective December 7, 2011, with Registration
Number KLFB00019. It is a member of the Japan Payment Service Association. K.K. I-Remit Japan started
operating commercially on May 14, 2012 in Tokyo. A branch in Nagoya will be opened this year. There are
about 150,000 Filipinos in Japan.
20

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, Inc. and, to date it has four (4) branches in Hong Kong: two (2) at the
Central District, one (1) at the Admiralty, and one (1) in Tsuen Wan. Hong Kong is one of the top destinations
of land-based OFWs in Asia. There are on average around 140,000 Filipinos in Hong Kong, most of whom
find work as domestic household helpers.
Power Star Asia Group Limited, a wholly-owned subsidiary, was incorporated on April 28, 2008 under the
Companies Ordinance of Hong Kong. It is engaged in foreign exchange trading activities. It was acquired by
I-Remit, Inc. 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, New South Wales, and in Perth, Western Australia. The Filipino-
Australian community is composed of approximately 200,000 immigrants, many of whom moved to Australia
from the Philippines in the early 1980’s.
The Company’s associates are as follows:
IRemit Singapore Pte Ltd (49% owned) 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. It is also registered with and has a license from the Monetary Authority of Singapore
under Section 8(3) of the Money-changing and Remittance Businesses Act (Chapter 187), with Registration
Number 01038. 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, Inc. 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.
21

Properties
I-Remit, Inc. and its subsidiaries do not own any real estate properties. I-Remit, Inc. is leasing its
headquarters located at the 25th, 26th, and 27th 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 8th 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 199.70 131,572.35 6 months Feb. 1, Aug. 31,
Discovery Centre Center, Pasig City
extension 2012 2012
Unit 2603, 26/F 25 ADB Avenue, Ortigas 199.70 159,480.42 2 Dec. 1, 2011 Nov. 30,
Discovery Centre Center, Pasig City
2013
Unit 2604 & 2605, 25 ADB Avenue, Ortigas 551.80 456,454.48 2 Dec. 1, 2011 Nov. 30,
26/F Discovery
Centre
Center, Pasig City
2013
Unit 2703, 27/F 25 ADB Avenue, Ortigas 199.70 133,998.70 2 Feb. 1, 2011 Jan. 31,
Discovery Centre Center, Pasig City
2013
8/F Wynsum
22 F. Ortigas Jr. Road, 287.00 157,850.00 2 Sep. 1, 2010 Aug. 31,
Corporate Plaza Ortigas Center, Pasig City
2012
Five (5) parking 22 F. Ortigas Jr. Road,
--- 17,500.00 2 Sep. 1, 2010 Aug. 31,
spaces, Wynsum
Corporate Plaza
Ortigas Center, Pasig City
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 2009, 2010, 2011 and first quarter 2012 are as follows:
Quarter Ending Date High Low Close
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
March 31, 2011 PHP 3.67 PHP 3.00 PHP 3.10
June 30, 2011 PHP 3.26 PHP 2.80 PHP 3.00
September 30, 2011 PHP 3.26 PHP 1.91 PHP 2.25
December 31, 2011 PHP 2.50 PHP 2.00 PHP 2.45
March 31, 2012 PHP 2.89 PHP 2.00 PHP 2.60
The stock prices at June 22, 2012 were: PHP 2.58 (High); PHP 2.54 (Low); PHP 2.57 (Close).
Holders
There were eighteen (18) shareholders of record as of May 31, 2012. Common shares outstanding amounted
to 602,729,800 as of May 31, 2012.
22

These eighteen (18) shareholders as of May 31, 2012, 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 * 240,706,388 38.9665
2 Star Equities Inc. Filipino 174,260,047 28.2099
3 Surewell Equities, Inc. Filipino 134,248,290 21.7327
4 JTKC Equities, Inc. Filipino 47,771,295 7.7334
5 JPSA Global Services Co. Filipino 18,700,000 3.0272
6 PCD Nominee Corporation – Non-Filipino Foreign 1,855,370 0.3004
7 Alba, Willy S. Filipino 88,000 0.0142
8 Lim, Ernesto B. Filipino 70,900 0.0115
9 Lim, Nieves Q. &/or Charis Honeylet Q. Lim Filipino 10,000 0.0016
10 GTS Insurance Brokers, Inc. Filipino 5,000 0.0008
11 Cruz, Napoleon D. Sr. and/or Luisa I. Cruz Filipino 3,000 0.0005
12 Soriano, Victor Martin J. Filipino 2,000 0.0003
13 Ona, Edgardo V. Filipino 2,000 0.0003
14 Olayres, Norberto F. and/or Olayres, Felisa J. Filipino 1,000 0.0002
15 Hapi Iloilo Corporation Filipino 1,000 0.0002
16 M. J. Soriano Trading, Inc. Filipino 1,000 0.0002
17 Au, Owen Nathaniel S. ITF: Li Marcus Au Filipino 400 0.0001
18 Gaw, Gilbert C. Filipino 110 0.0000
Total 617,725,800 100.0000
* The PCD shares include 68,839,952 shares lodged by JTKC Equities, Inc.; thus, the latter’s total shareholdings is 116,611,247 representing
18.8775% 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 authorized the declaration of 55,308,800 common shares stock
dividend, with a par value of one peso (PHP 1.00) 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, was taken from its unissued
capital stock. Pursuant to the provisions of the Corporation Code, the aforementioned stock dividend
declaration was submitted for stockholders’ approval during their annual meeting on July 29, 2011. On
September 6, 2011, the PSE approved the listing of additional 55,308,800 common shares to cover said stock
dividend declaration. On September 08, 2011, the stock dividend was paid to all of the Company’s
stockholders of record as of August 15, 2011.
On June 22, 2012, the Board of Directors of the Company authorized the declaration of cash dividends in the
total amount of PHP 120,000,000.00 or approximately PhP 0.1993 per share, based on the Company’s
602,071,800 issued and outstanding common shares as of the end of trading on the said date, payable to all
of its shareholders-of-record as of 12 July 2012. Payment date will be on or before 07 August 2012.
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
23

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.
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 properties 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.
24

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, Inc. have, in August 2011, executed sworn Certifications of Independent Directors stating
that they possess all the qualifications and none of the disqualifications to serve as Independent Directors of
the Parent Company, as provided for in Section 38 of the Securities Regulation Code. The Certifications of
Independent Directors have been submitted to the Securities and Exchange Commission on August 16, 2011.
25

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
29, 2011. Each member of their respective committees named below began holding office on July 29, 2011
and will serve until his successor shall have been duly qualified and elected.
Executive Committee
Except as provided in Section 35 of the Corporation Code, the Executive Committee has and
exercises all such powers as may be delegated to it by the Board. It acts on matters in
accordance with the authorities granted to it in case a full Board meeting cannot be convened.
The 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.
26

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.
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 5, 2012. 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 2011.
The Company accomplished and submitted the 2011 Corporate Governance Guidelines for Listed Companies
Disclosure Template of The Philippine Stock Exchange, Inc. on March 28, 2012.
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, 2011 and 2010, and for the
years ended December 31, 2011, 2010 and 2009 are attached as Annexes “C” and “C-1”. The Company’s
SEC Form 17-Q for the first quarter of year 2012 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:
MARIA CECILIA V. SORIA
CORPORATE SECRETARY, I-REMIT, INC.
2704 EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE
EXCHANGE ROAD, ORTIGAS CENTER
1605 PASIG CITY, METRO MANILA
PHILIPPINES
27

Plan of Operation
MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
1
Annex “A”
The Company’s strategy is anchored on expansion and gaining a larger share of the inward remittances of
overseas Filipino workers (OFWs) and tapping the potential of other international remittance corridors. 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 Financial Services Authority (FSA) of the United Kingdom has authorized the Company’s wholly-owned
subsidiary, IRemit Global Remittance Limited (IGRL), to operate the money remittance business effective April
15, 2011 under the Payment Services Regulations 2009, the transposition into English law of the European
Union (EU) Payment Services Directive (2007/64/EC). As an authorized payment institution, IGRL may
provide payment services including money remittance in all EU and European Economic Area states through
“passporting” by establishing branches, engaging agents, or providing cross-border services. Currently, it has
four (4) branches: two (2) in the United Kingdom and two (2) in Italy (Rome and Milan). It also has 25 agents:
23 in the United Kingdom, one (1) in Austria and one (1) in Germany. It currently has “passporting” rights in
Italy, Austria, Ireland, and Germany. The Company intends to utilize the “passporting” rights of IGRL in
opening additional branches and engaging more agents in Europe.
I-Remit’s wholly-owned subsidiary, K.K. I-Remit Japan has been registered as a funds transfer company in
accordance with the Payment Services Act of Japan. It has an office in Tokyo and has authorization to open
in Nagoya. These offices will offer remittance services to Filipinos. The Company is considering expanding its
services in the country by opening additional branches that will also offer money transfer services to workers
of other nationalities in Japan.
I-Remit has been in partnership with the Bank of China since 2008 to service the remittance needs primarily of
expatriate Chinese, initially in Italy, the United Kingdom, and Canada. The Company intends to extend its
services to expatriate Chinese in Japan.
Recently, the Company signed an agreement with Bank Internasional Indonesia, a unit of Malaysian Banking
Berhad, in line with its bid to reach out to the non-Filipino remittance market. This partnership between I-Remit
and one of the largest banks in Indonesia will enable the Company to reach overseas Indonesians and their
beneficiaries across the country of more than 17,500 islands through the bank’s 368 branches and more than
1,190 automated teller machines. Both the Philippines and Indonesia have large populations of overseas
workers and expatriates. They are also among the world’s biggest recipients of remittance inflows, with the
Philippines receiving USD 21.3 billion and Indonesia USD 7.1 billion, according to the 2010 Migration and
Remittances Factbook of the World Bank.
I-Remit utilize the potential of the offices of its subsidiaries and affiliates abroad to tap other international
remittance corridors and provide its services to customers of various nationalities that need to send money
back to their home countries.
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 also utilizes various technological
platforms and establishes strategic partnerships with banks and other financial institutions, making it possible
for online and same-day crediting of accounts or delivery of remittances.
iDol or I-Remit Direct Online was initially introduced to the Company’s customers in Canada. This facility
allows remitters to avail of the Company’s remittance services through the Internet. iDOL allows the Company
to reach out to a wider base of customers particularly in countries with large territorial areas. The facility is
also scheduled to be introduced to remittance customers in the United Kingdom, Australia, Singapore, Japan,
New Zealand, Hong Kong, Italy, Austria, and Taiwan.

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 7,100 (as of June 7, 2012) 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 about 11,000 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 is promoting this alternative delivery channel aggressively 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 the SSS, Pag-IBIG,
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 24x7 customer service support center. Customers now have
easy, convenient access to customer services through a 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
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 and
financial intelligence units 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 periodically undertakes internal reviews and when required
by a particular country, its subsidiaries and affiliates are subjected to external audits or compliance
examinations.
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. It also reinforces its presence in the countries that it operates in by participating actively
in the activities of Filipino communities and promoting the Company’s services through Filipino organizations.
2

Full Years
2011 compared to 2010
I-Remit realized a consolidated net income of PHP 136.1 million in 2011, an increase of PHP 70.1 million or
106.4% over the consolidated net income of PHP 65.9 million in 2010. The consolidated net income in 2011
and 2010 are 17.3% and 8.7% of the 2011 and 2010 revenue, respectively.
Revenues increased by 3.4% or PHP 26.1 million from PHP 761.8 million in 2010 to PHP 787.9 million in 2011
mainly due to the increase in realized foreign exchange gains. Foreign exchange gains increased by 4.6% or
PHP 12.1 million from PHP 262.1 million in 2010 to PHP 274.2 million in 2011. The Company’s revenue from
delivery fees grew by 2.9% or PHP 14.5 million from PHP 498.7 million in 2010 to PHP 513.3 million in 2011
largely because of the appreciation of the Philippine peso against the U.S. dollar. The Company’s fees are
largely settled in U.S. dollars. The average peso-dollar exchange rate was PHP 45.11 in 2010 against PHP
43.31 in 2011, a gain of 4.0% or PHP 1.80 per dollar. In December 2011, the average peso-dollar exchange
rate was PHP 43.65 per dollar. The value of transactions grew by 16.7% or USD 202.3 million from USD
1.213 billion in 2010 to USD 1.415 billion in 2011. The number of transactions processed by the Company
grew by only 2% from 2.737 million in 2010 to 2.794 million in 2011. Other fees decreased by 60.69% or PHP
0.5 million from PHP 0.9 million in 2010 to PHP 0.4 million in 2011 due to lesser number of amendments and
retrievals recorded in 2011.
Costs of services decreased by 2.3% or PHP 4.7 million from PHP 204.1 million in 2010 to PHP 199.4 million
in 2011. Total costs of services in 2011 and 2010 are 25.3% and 26.8% of the 2011 and 2010 revenue,
respectively. These are mainly due to the decrease in delivery charges by 49.8% or PHP 14.9 million from
PHP 29.9 million in 2010 to PHP 15.0 million in 2011 brought about by the huge reduction in door-to-door
transactions in 2011. These are partly offset by the increase in the cost of fulfilling delivery of remittances to
beneficiaries mostly in the form of bank charges by 5.8% or PHP 10.2 million from PHP 174.2 million in 2010
to PHP 184.4 million in 2011.
Other operating income (loss)-net increased by 56.9% or PHP 9.7 million from PHP 17.0 million in 2010 to
PHP 26.8 million in 2011. Total other operating income (loss)-net in 2011 and 2010 are 3.40% and 2.24% of
the 2011 and 2010 revenue, respectively. These are mainly due to the PHP 21.7 million refund of GST
previously paid by International Remittance (Canada) Limited (IRCL) and Worldwide Exchange Pty Ltd
(WEPL) to the government of Canada and Australia, respectively. Both entities are exempt from paying GST.
These are partly offset by the decline in net trading gains by PHP 5.5 million or 223.8% from PHP 2.5 million in
2010 to –PHP 3.1 million in 2011 due to unrealized capital loss accrued from investment on stocks by Power
Star Asia Group Limited (PSAGL). PSAGL invested on stocks at an average cost of 126.90 marked at 126.30
as of the close of December 31, 2011.
Total operating expenses was higher by PHP 11.4 million (2.6%) from PHP 435.9 million in 2010 to PHP 447.3
million in 2011. Total other operating expenses in 2011 and 2010 are 56.8% and 57.2% of the 2011 and 2010
revenue, respectively. These are mainly on account of higher rental, salaries, wages and employee benefits,
photocopying and supplies, entertainment, amusement and recreation, communication, light and water and
other operating expenses. The increase in these expense items are related mainly to the Company’s
expansion as it opened new offices in Canada, Italy and Japan. Rental expenses increased by 15.4% from
PHP 46.4 million in 2010 to PHP 53.5 million in 2011 due to the yearly escalation applied by lessors on rented
office premises. Salaries, wages and employee benefits expenses increased by 2.4% from PHP 208.5 million
in 2010 to PHP 213.5 million in 2011. Photocopying and supplies expenses increased by 24.7% from PHP11.7
million in 2010 to PHP 14.6 in 2011 due to higher production of visa cards and kits in 2011. Entertainment,
amusement and recreation expenses increased by 56.6% from PHP 3.8 million in 2010 to PHP 6.0 million in
2011 mainly due to the development of offices/tie-ups in Japan, Kuwait, Saudi Arabia and Oman.
Communication, light and water increased by 6.4% from PHP 22.1 million in 2010 to PHP 23.5 million in 2011
due to increase in number of remittance transactions in 2011 which required more communication between the
company and its customers. Along with this, electricity bills also increased as more transactions required
extended processing time. Other operating expenses increased by 34.0% from PHP 21.0 million in 2010 to
PHP 28.2 million in 2011 mainly due to disallowed Input VAT for years 2005 and 2006 (PHP 2.1 million),
license fee paid for the start in operation of K.K. I-Remit Japan (PHP 3.9 million), cost of payroll outsourced to
Prople BPO, Inc. and increase in association dues charges by lessors of the Parent Company (PHP 1.1
milllion). These are partly offset by lower marketing, professional fees, transportation and travel, depreciation
and amortization expenses. Marketing expenses decreased by 14.7% from PHP 42.6 million in 2010 to PHP
36.3 million in 2011 while transportation and travel expenses decreased by 10.7% from PHP 26.7 million in
2010 to PHP 23.8 million in 2011 due to cost cutting measures implemented by the Parent Company in all its
foreign subsidiaries. Professional fees decreased by 8.8% from PHP 39.7 million in 2010 to PHP 36.2 million
in 2011 due to termination of three (3) retainer contracts of the Parent Company and cessation of operation in
Austria. Depreciation and amortization decreased by 13.3% from PHP 13.3 million in 2010 to PHP 11.5 million
in 2011 due to higher number of office equipment fully depreciated in 2011.
3

Interest income increased by 10.8% or PHP 1.3 million from PHP 12.5 million in 2010 to PHP 13.9 million in
2011. Interest income in 2011 and 2010 are 1.8% and 1.6% of the 2011 and 2010 revenue, respectively.
These are mainly due to higher deposits resulting from higher volume of transactions in 2011.
Interest expense increased by 31.2% or PHP 9.1 million from PHP 29.2 million in 2010 to PHP 38.3 million
2011. Interest expense in 2011 and 2010 are -4.9% and -3.8% of the 2011 and 2010 revenue, respectively.
These are mainly due to higher availment of loans from bank partners during 2011 and higher annual interest
rates on the Parent Company’s unsecured, short-term interest-bearing peso-denominated bank loans ranging
from 5.00% to 7.00% in 2011 and 5.50% to 6.00% in 2010.
In February 2010, IREMIT Remittance Consulting GmbH (formerly IREMIT EUROPE Remittance Consulting
AG) started its remittance business in Italy. On April 28, 2011, IREMIT Remittance Consulting GmbH
(IRCGmbH) stopped its money remittance operations in Rome and Milan in Italy in accordance with Article 75
of the Transitional and Final Provisions of Austrian Payment Services Act, which stipulated that credit
institutions that have held authorizations pursuant to Article 1 paragraph 1 no 23 BWG, as amended by the
Federal Act Federal Law Gazette No. 35/2003, prior to December 25, 2009, have only until April 30, 2011 to
carry out their money remittance operations.
In December 2011, IRCGmbH sold assets relating to its operations in Italy to a third party. These assets, with
an aggregate carrying amount of PHP 7.29 million, were sold for a consideration of PHP 72.43 million thereby
resulting to a gain on sale of PHP 65.14 million.
The results of IRCGmbH’s operation in Italy follow:
2011 2010
Delivery fees PHP5,289,202 PHP7,486,658
Realized foreign exchange gains - net 1,006,867 673,204
6,296,069 8,159,862
Cost of services 596,703 3,749,195
Gross income 5,699,366 4,410,667
Other income - net 615,909 38,935
Operating expenses (45,024,921) (34,754,501)
Loss from operations (PHP38,709,646) (PHP30,304,899)
Gain on sale of assets 65,139,395 −
Income (Loss) from discontinued operations PHP26,429,749 (PHP30,304,899)
The total assets of the Company decreased by PHP 82.1 million or 3.5% to PHP 2.273 billion as of December
31, 2011 against PHP 2.356 billion as of December 31, 2010. Cash and cash equivalents increased by PHP
7.4 million or 0.8% from PHP 883.8 million in 2010 to PHP 891.2 million in 2011. Financial assets at fair value
through profit or loss amounted to PHP 125.2 million at end-2011 against PHP 102.9 million at end-2010,
increasing by PHP 22.3 million or 21.6%. Financial assets at fair value through profit or loss in 2011 and 2010
are 5.5% and 4.4% of the total assets in 2011 and 2010, respectively. These assets consist mainly of
investments in debt securities (listed overseas) held for trading. Power Star Asia Group Limited started
investing on stocks in 2011. Accounts receivable declined by PHP 125.8 million or 11.9% from PHP 1,059.3
million in 2010 to PHP 933.5 million in 2011. Accounts receivable in 2011 and 2010 are 41.0% and 45.0% of
the total assets in 2011 and 2010, respectively. These are mainly due to improved collection of advances to
agents and foreign subsidiaries in 2011. Other receivables increased by PHP 31.0 million or 37.1% from PHP
83.4 million in 2010 to PHP 114.4 million in 2011. Other receivables in 2011 and 2010 are 5.0% and 3.5% of
the total assets in 2011 and 2010, respectively. These are mainly due to nontrade receivable from the sale of
various assets of IREMIT Remittance Consulting GmbH related to the discontinued operations in Italy which
was subsequently collected in March 2012 and partly offset by the application of receivables from noncontrolling
shareholders of IREMIT Remittance Consulting GmbH and Worldwide Exchange Pty Ltd amounting
to PHP 12.3 million and PHP 25.01 million, respectively, against the acquisition costs. Other current assets
declined by PHP 7.4 million or 20.4% from PHP 36.3 million in 2010 to PHP 28.9 million in 2011. Other
current assets in 2011 and 2010 are 1.3% and 1.5% of the total assets in 2011 and 2010, respectively. These
are mainly due to lower balances of prepaid expenses and visa cards inventory.
The Company’s non-current assets declined by PHP 9.7 million or 5.1% from PHP 190.3 million at end-2010
to PHP 180.6 million at end-2011. Total noncurrent assets in 2011 and 2010 are 7.9% and 8.0% of the total
assets in 2011 and 2010, respectively. These are mainly due to the equity in net earnings of IRemit Singapore
Pte Ltd of PHP 1.5 million and Hwa Kung Hong & Co., Ltd. of PHP 0.6 million in 2011, lesser investment on
fixed assets in 2011, deferred tax asset on additional net loss of I-Remit New Zealand Limited in 2011 and
issuance of tax credit certificates by the BIR for Input VAT for the years 2005 and 2006 amounting to PHP
1.71 million and PHP 3.82 million, respectively.
4

Total liabilities declined by PHP 171.6 million or 15.8% from PHP 1.084 billion at end-2010 to PHP 912.7
million at end-2011 mainly due to lower level of current liabilities. Total liabilities in 2011 and 2010 are 40.1%
and 46.0% of the total liabilities and equity in 2011 and 2010, respectively. Current liabilities decreased by
PHP 170.8 million or 15.7% from PHP 1.083 billion in 2010 to PHP 912.6 million in 2011. Total current
liabilities in 2011 and 2010 are 40.1% and 46.0% of the total liabilities and equity in 2011 and 2010,
respectively. Beneficiaries and other payables increased by PHP 40.6 million or 20.3% from PHP 199.5
million in 2010 to PHP 240.1 million in 2011. Beneficiaries and other payables in 2011 and 2010 are 10.6%
and 8.5% of the total liabilities and equity in 2011 and 2010, respectively. These are mainly due to additional
channels opened in 2011 for the delivery of remittances to beneficiaries. Interest-bearing loans decreased by
PHP 211 million or 24.1% from PHP 877 million in end-2010 to PHP 666 million in end-2011. Interest-bearing
loans in end-2011 and end-2010 are 29.3% and 37.2% of the total liabilities and equity in end-2011 and end-
2010, respectively. These are mainly due to lesser loan exposure at end-2011 mainly brought about by
improved collection of accounts receivable.
The Company’s stockholders’ equity as of December 31, 2011 stood at PHP 1.361 billion, higher by PHP 89.4
million or 7.0% against the end-2010 level of PHP 1.271 billion. Total equity in 2011 and 2010 are 59.9% and
54.0% of the total liabilities and equity in 2011 and 2010, respectively. Capital stock increased by PHP 55.3
million or 9.8% from PHP 562.4 million in 2010 to PHP 617.7 million in 2011. Capital stock in 2011 and 2010
are 27.2% and 23.9% of the total liabilities and equity in 2011 and 2010, respectively. These are mainly due to
the distribution of stock dividend to stockholders on September 8, 2011. Capital paid-in excess of par value
decreased by PHP 38.3 million or 8.9% from PHP 429.5 million in 2010 to PHP 391.2 million in 2011. Capital
paid-in excess of par value in 2011 and 2010 are 17.2% and 18.2% of the total liabilities and equity in 2011
and 2010, respectively. The decrease in capital paid-in excess of par value in 2011 represents excess of
acquisition cost over the carrying value of the non-controlling interests acquired in 2011 (IREMIT Remittance
Consulting GmbH and Worldwide Exchange Pty Ltd). Treasury stock increased by PHP 12.9 million or 32.1%
from -PHP 40.1 million in 2010 to -PHP 53.0 million in 2011. Treasury stock in 2011 and 2010 are -2.3% and -
1.7% of the total liabilities and equity in 2011 and 2010, respectively. The increase in Treasury stock in 2011
represents buy-back of 5,544,000 shares.
Below are the comparative key performance indicators of the Company (Parent Company and subsidiaries):
Performance Indicator Definition December 31, 2011 December 31, 2010
Return on Equity (ROE)
Net income* over average stockholders’ equity during the
period
10% 5%
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 0.22 PHP 0.11
Sales Growth
Total transaction value in USD in present period over the
previous year
17% 10%
Gross Income Revenue less total cost of services (PHP millions) 588.4 557.6
* Net Income attributable to equity holders of the Parent Company and Minority Interest. EPS computed using Net Income
attributable to equity holders of the Parent Company for the year ended December 31, 2011 and for the year ended
December 31, 2010 are PHP 0.23 and PHP 0.13, respectively.
Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition December 31, 2011 December 31, 2010
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
56% 3%
Return on Assets (ROA) Net income over average total assets during the period 22% 1%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 43.64 PHP 1.80
Sales Growth
Total transaction value in USD in present period over the
previous year
2% 3%
Gross Income Revenue less total cost of services (PHP millions) 92.6 97.5
Lucky Star Management Limited
Performance Indicator Definition December 31, 2011 December 31, 2010
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
-3% 89%
Return on Assets (ROA) Net income over average total assets during the period -1% 26%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 1.33) PHP 30.53
Sales Growth
Total transaction value in USD in present period over the
previous year
-25% 8%
Gross Income Revenue less total cost of services (PHP millions) 17.0 25.6
5

IRemit Global Remittance Limited
Performance Indicator Definition December 31, 2011 December 31, 2010
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
-767% 39%
Return on Assets (ROA) Net income over average total assets during the period -33% 6%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 108,090.79) PHP 10,191.13
Sales Growth
Total transaction value in USD in present period over the
previous year
28% 1%
Gross Income Revenue less total cost of services (PHP millions) 50.7 43.8
I-Remit Australia Pty Ltd
Performance Indicator Definition December 31, 2011 December 31, 2010
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
0.4% 1%
Return on Assets (ROA) Net income over average total assets during the period 0.2% 0.2%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 7,306.00 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) 0.6 0.3
Worldwide Exchange Pty Ltd
Performance Indicator Definition December 31, 2011 December 31, 2010
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
6% 5%
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 3.02 PHP 2.00
Sales Growth
Total transaction value in USD in present period over the
previous year
11% 20%
Gross Income Revenue less total cost of services (PHP millions) 34.6 29.2
I-Remit New Zealand Limited
Performance Indicator Definition December 31, 2011 December 31, 2010
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 -24% -9%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 3,046.61) (PHP 1,129.10)
Sales Growth
Total transaction value in USD in present period over the
previous year
23% 38%
Gross Income Revenue less total cost of services (PHP millions) 5.3 8.8
IREMIT Remittance Consulting GmbH
Performance Indicator Definition December 31, 2011 December 31, 2010
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
194% -193%
Return on Assets (ROA) Net income over average total assets during the period 14% -74%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 141.86 (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) 0.5 11.7
Power Star Asia Group Limited
Performance Indicator Definition December 31, 2011 December 31, 2010
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
30% 38%
Return on Assets (ROA) Net income over average total assets during the period 29% 36%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 66.53 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) 70.4 62.4
6

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.
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 0.11 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) 557.6 547.7
* 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 0.13 and PHP 0.25, respectively.
7

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 PHP 1.80 PHP 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 PHP 30.53 PHP 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 PHP 10,191.13 PHP 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 PHP 14,435.50 PHP 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 PHP 2.00 PHP 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
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 (PHP 1,129.10) (PHP 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
8

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 (PHP 666.31) (PHP 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 PHP 63.27 PHP 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.
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.
9

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
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
10

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
Interim Period
March 31, 2012 vs. December 31, 2011
The total assets of the Company increased by PHP 51.4 million or 2.3% to PHP 2.325 billion as of March 31,
2012 against PHP 2.273 billion as of December 31, 2011.
Cash and cash equivalents increased by PHP 260.6 million or 29.2% from PHP 891.2 million as of December
31, 2011 to PHP 1.151 billion as of March 31, 2012. Cash and cash equivalents as of March 31, 2012 and
December 31, 2011 are 49.5% and 39.2% of the total assets as of March 31, 2012 and December 31, 2011,
respectively. Financial assets at FVPL, which consist of investments in private debt securities (listed
overseas) held for trading, decreased by PHP 16.2 million or -12.9% from PHP 125.2 million as of December
31, 2011 to PHP 109.0 million as of March 31, 2012. Financial assets at FVPL as of March 31, 2012 and
December 31, 2011 are 4.7% and 5.5% of the total assets as of March 31, 2012 and December 31, 2011,
respectively. Accounts receivable decreased by PHP 151.8 million or -16.3% from PHP 933.5 million as of
December 31, 2011 to PHP 781.8 million as of March 31, 2012. Accounts receivable as of March 31, 2012
and December 31, 2011 are 33.6% and 41.1% of the total assets as of March 31, 2012 and December 31,
2011, respectively. Other receivables decreased by PHP 31.6 million or -27.7% from PHP 114.4 million as of
December 31, 2011 to PHP 82.8 million as of March 31, 2012. Other receivables as of March 31, 2012 and
December 31, 2011 are 3.6% and 5.0% of the total assets as of March 31, 2012 and December 31, 2011,
respectively. Other current assets decreased by PHP 13.8 million or -47.5% from PHP 28.9 million as of
December 31, 2011 to PHP 15.2 million as of March 31, 2012.
Investments in associates decreased by PHP 4.4 million or -19.1% from PHP 23.0 million as of December 31,
2011 to PHP 18.6 million as of March 31, 2012. Property and equipment-net increased by PHP 4.1 million or
21.5% from PHP 19.2 million as of December 31, 2011 to PHP 23.3 million as of March 31, 2012. Goodwill
increased by PHP 0.3 million or 0.3% from PHP 92.7 million as of December 31, 2011 to PHP 93.0 million as
of March 31, 2012 due to foreign exchange adjustment. Deferred tax asset increased by PHP 2.2 million or
44.3% from PHP 5.0 million as of December 31, 2011 to PHP 7.2 million as of March 31, 2012. Software
costs–net increased by PHP 0.1 million or 9.7% from PHP 1.4 million as of December 31, 2011 to PHP 1.6
million as of March 31, 2012. Other noncurrent assets increased by PHP 1.8 million or 4.7% from PHP 38.9
million as of December 31, 2011 to PHP 40.8 million as of March 31, 2012.
11

Total liabilities increased by PHP 25.2 million or 2.8% from PHP 912.7 million as of December 31, 2011 to
PHP 937.9 million as of March 31, 2012. Total liabilities as of March 31, 2012 and December 31, 2011 are
40.3% and 40.1% of the total liabilities and equity as of March 31, 2012 and December 31, 2011, respectively.
Current liabilities increased by PHP 25.2 million or 2.8% from PHP 912.6 million as of December 31, 2011 to
PHP 937.8 million as of March 31, 2012 mainly due to the increase in Beneficiaries and other payables by
PHP 63.3 million or 26.4% from PHP 240.0 million as of December 31, 2011 to PHP 303.4 million as of March
31, 2012. Interest-bearing loans decreased by PHP 48.0 million or -7.2% from PHP 666.0 million as of
December 31, 2011 to PHP 618.0 million as of March 31, 2012. Interest-bearing loans consist of unsecured,
short-term peso-denominated loans from various local financial institutions with interest rates ranging from
5.0% to 6.75% per annum in First Quarter 2012 and 5.0% to 7.0% in 2011. Total current liabilities as of March
31, 2012 and December 31, 2011 are 40.3% and 40.1% of the total liabilities and equity as of March 31, 2012
and December 31, 2011, respectively.
Accounts payable and other liabilities increased by PHP 73.2 million or 29.7% to PHP 319.8 million as of
March 31, 2012 compared with PHP 246.6 million as of December 31, 2011. Accounts payable and other
liabilities as of March 31, 2012 and December 31, 2011 are 13.8% and 10.8% of the total liabilities and equity
as of March 31, 2012 and December 31, 2011, respectively. Comprising Accounts payable and other liabilities
are payables to beneficiaries of PHP 232.9 million, payables to agents, couriers and trading clients of PHP
34.6 million, accrued expenses of PHP 17.2 million, withholding tax payable of PHP 2.2 million, advances from
related parties of PHP 12.2 million, income tax payable of PHP 16.4 million, payables to government agencies
of PHP 1.4 million, and other non-trade payables of PHP 2.9 million.
Noncurrent liabilities amounting to PHP 0.12 million as of March 31, 2012 consist of retirement liability of PHP
0.09 million and deferred tax liability of PHP 0.03 million.
The Company’s stockholders’ equity as of March 31, 2012 stood at PHP 1.387 billion, higher by PHP 26.2
million or 1.9% against the year-end 2011 level of PHP 1.361 billion due to higher net income. Total
stockholders’ equity as of March 31, 2012 and December 31, 2011 are 59.7% and 59.9% of the total liabilities
and equity as of March 31, 2012 and December 31, 2011, respectively.
The Bangko Sentral ng Pilipinas reported last month that money transfers by overseas Filipinos grew by 5.8%
to USD1.587 billion in February 2012 from USD1.5 billion a year earlier. On a year-to-date basis, the total
remittance inflows amounted to USD3.144 billion in January to February of 2012, growing by 5.6% against the
inflows of USD2.977 billion in the first two (2) months of 2011. The continued inflow of remittances is
supported by the sustained demand for Filipino manpower in various foreign labor markets. The Philippine
Overseas Employment Administration (POEA) recently announced that it expects over a million highly skilled
Filipino workers would be hired abroad this year. The latest data from the POEA showed that for the period
January-March 2012, job orders for professional and technical, service and production workers increased
24.6% to 200,010 compared with the same period last year. These are mainly intended for employment
opportunities in Saudi Arabia, United Arab Emirates, Qatar, Taiwan, Kuwait, Singapore and Hong Kong,
among others.
Below are the comparative key performance indicators of the Company and its subsidiaries:
Mar. 31, 2012 Dec. 31, 2011
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income* over average stockholders’ equity during the
period
2% 10%
Return on Assets (ROA) Net income* over average total assets during the period 1% 5%
Earnings per Share (EPS) Net income* over average number of outstanding shares PHP 0.06 PHP 0.22
Sales Growth
Total transaction value in USD in present period over the
previous year
47% 17%
Gross Income Revenue less total cost of services (PHP millions) 148.2 588.4
* 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 period ended March 31, 2012 and for the year ended December
31, 2011 are PHP 0.06 and PHP 0.23, respectively.
12

Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Mar. 31, 2012 Dec. 31, 2011
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
0.5% 56%
Return on Assets (ROA) Net income over average total assets during the period 0.2% 22%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 0.46 PHP 43.64
Sales Growth
Total transaction value in USD in present period over the
previous year
-5% 2%
Gross Income Revenue less total cost of services (PHP millions) 21.9 92.6
Lucky Star Management Limited
Mar. 31, 2012 Dec. 31, 2011
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
-7% -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 3.08) (PHP 1.33)
Sales Growth
Total transaction value in USD in present period over the
previous year
-14% -25%
Gross Income Revenue less total cost of services (PHP millions) 3.5 17.0
IRemit Global Remittance Limited
Mar. 31, 2012 Dec. 31, 2011
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
-96% -767%
Return on Assets (ROA) Net income over average total assets during the period -3% -33%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 20,881.96) (PHP 108,090.79)
Sales Growth
Total transaction value in USD in present period over the
previous year
61% 28%
Gross Income Revenue less total cost of services (PHP millions) 18.4 50.7
I-Remit Australia Pty Ltd
Mar. 31, 2012 Dec. 31, 2011
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
0.1% 0.4%
Return on Assets (ROA) Net income over average total assets during the period 0.04% 0.2%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 2,225.00 PHP 7,306.00
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 0.05 0.6
Worldwide Exchange Pty Ltd
Mar. 31, 2012 Dec. 31, 2011
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
0.3% 6%
Return on Assets (ROA) Net income over average total assets during the period 0.04% 1%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 0.13 PHP 3.02
Sales Growth
Total transaction value in USD in present period over the
previous year
32% 11%
Gross Income Revenue less total cost of services (PHP millions) 9.2 34.6
I-Remit New Zealand Limited
Mar. 31, 2012 Dec. 31, 2011
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
19% 40%
Return on Assets (ROA) Net income over average total assets during the period -14% -24%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 1,908.51) (PHP3,046.61)
Sales Growth
Total transaction value in USD in present period over the
previous year
39% 23%
Gross Income Revenue less total cost of services (PHP millions) -0.7 5.3
13

IREMIT Remittance Consulting GmbH
Mar. 31, 2012 Dec. 31, 2011
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
-22% 194%
Return on Assets (ROA) Net income over average total assets during the period -4% 14%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 35.28) PHP 141.86
Sales Growth
Total transaction value in USD in present period over the
previous year
-99% -19%
Gross Income Revenue less total cost of services (PHP millions) 0.03 0.5
Power Star Asia Group Limited
Mar. 31, 2012 Dec. 31, 2011
Performance Indicator Definition
(Three Months) (Full Year)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
8% 30%
Return on Assets (ROA) Net income over average total assets during the period 8% 29%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 22.46 PHP 66.53
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 17.2 70.4
March 31, 2012 vs. March 31, 2011
I-Remit realized a consolidated net income of PHP 33.4 million in First Quarter 2012, an increase of PHP 5.0
million or 17.6% over the consolidated net income of PHP 28.4 million in First Quarter 2011. The consolidated
net income in First Quarter 2012 and First Quarter 2011 are 16.7% and 13.2% of the First Quarter 2012 and
First Quarter 2011 revenue, respectively.
Revenues decreased by PHP 15.0 million or -7.0% to PHP 199.3 million in First Quarter 2012 from PHP 214.3
million in First Quarter 2011. Accordingly, the Company’s gross income decreased by PHP 17.3 million or -
10.4% from PHP 165.5 million in First Quarter 2011 to PHP 148.2 million in First Quarter 2012. The gross
income in First Quarter 2012 and First Quarter 2011 are 74.4% and 77.2% of the First Quarter 2012 and First
Quarter 2011 revenue, respectively.
Transaction count increased by 4.4% from 698,007 in First Quarter 2011 to 728,465 in First Quarter 2012).
USD remittance volume increased by 47.3% from USD 320.4 million in First Quarter 2011 to USD 471.8
million in First Quarter 2012). Of the total transaction count in First Quarter 2012, the percentage contributions
per region are as follows: Asia-Pacific, 43%; Middle East, 29%; North America, 13%; and Europe, 12%. In
terms of USD remittance volume, the regional contributions are as follows: Asia-Pacific, 26%; Middle East,
13%, North America, 10%, and Europe, 9%.
Other operating income increased by PHP 12.7 million from a net loss of PHP 3.8 million in First Quarter 2011
to an income of PHP 8.9 million in First Quarter 2012.
Total operating expenses was lower by PHP 8.5 million or -7.0% from PHP 120.7 million in First Quarter 2011
to PHP 112.2 million in First Quarter 2012 mainly on account of lower professional fees, salaries, wages and
employee benefits, transportation and travel, and marketing expenses. Total operating expenses in First
Quarter 2012 and First Quarter 2011 are 56.30% and 56.32% of the First Quarter 2012 and First Quarter 2011
revenue, respectively. Interest expense was lower by PHP 2.6 million from PHP 8.3 million in First Quarter
2011 to PHP 5.8 million in First Quarter 2012.
The total assets of the Company decreased by PHP 212.4 million or -8.4% to PHP 2.325 billion as of March
31, 2012 against PHP 2.537 billion as of March 31, 2011. Cash and cash equivalents increased by PHP 190.4
million or 19.8% from PHP 961.4 million as of March 31, 2011 to PHP 1.151 billion as of March 31, 2012.
Cash and cash equivalents as of March 31, 2012 and March 31, 2011 are 49.5% and 37.9% of the total assets
as of March 31, 2012 and March 31, 2011, respectively. Financial assets at FVPL, which consist of
investments in private debt securities (listed overseas) held for trading, stood at PHP 109.0 million as of March
31, 2012, a decrease of PHP 2.0 million or -1.8% against PHP 111.0 million as of March 31, 2011.
Receivables decreased by PHP 387.8 million or -31.0% from PHP 1.252 billion as of March 31, 2011 to PHP
864.6 million as of March 31, 2012. Receivables as of March 31, 2012 and March 31, 2011 are 37.2% and
49.3% of the total assets as of March 31, 2012 and March 31, 2011, respectively. Other current assets
decreased by PHP 2.7 million or -15.1% from PHP 17.9 million as of March 31, 2011 to PHP 15.2 million as of
March 31, 2012. Investments in associates decreased by PHP 2.9 million or -13.6% from PHP 21.6 million as
of March 31, 2011 to PHP 18.6 million as of March 31, 2012. Property and equipment-net decreased by PHP
4.8 million or -17.0% from PHP 28.1 million as of March 31, 2011 to PHP 23.3 million as of March 31, 2012.
14

Goodwill decreased by PHP 1.5 million or -1.6% from PHP 94.5 million as of March 31, 2011 to PHP 93.0
million as of March 31, 2012 due to foreign exchange adjustment. Deferred tax asset increased by PHP 1.9
million or 36.5% from PHP 5.3 million as of March 31, 2011 to PHP 7.2 million as of March 31, 2012. Software
costs–net decreased by PHP 1.0 million or -38.8% from PHP 2.6 million as of March 31, 2011 to PHP 1.6
million as of March 31, 2012. Other noncurrent assets decreased by PHP 2.3 million or -5.4% from PHP 43.1
million as of March 31, 2011 to PHP 40.8 million as of March 31, 2012.
Total liabilities decreased by PHP 313.0 million or -25.0% from PHP 1.250 billion as of March 31, 2011 to PHP
937.9 million as of March 31, 2012. Total liabilities as of March 31, 2012 and March 31, 2011 are 40.3% and
49.3% of the total liabilities and equity as of March 31, 2012 and March 31, 2011, respectively. Current
liabilities decreased by PHP 312.4 million or -25.0% from PHP 1.250 billion as of March 31, 2011 to PHP
937.8 million as of March 31, 2012 mainly due to the decrease in beneficiaries and other payables by PHP
229.8 million or -43.1 from PHP 533.2 million as of March 31, 2011 to PHP 303.4 million as of March 31, 2012
as well as to interest-bearing loans by PHP 83.0 million or -11.8 from PHP 701.0 million as of March 31, 2011
to PHP 618.0 million as of March 31, 2012. Interest-bearing loans consist of unsecured, short-term pesodenominated
loans from various local financial institutions with interest rates ranging from 5.0% to 6.75% per
annum in First Quarter 2012 and 5.0% to 6.0% in First Quarter 2011. Total current liabilities as of March 31,
2012 and March 31, 2011 are 40.3% and 49.3% of the total liabilities and equity as of March 31, 2012 and
March 31, 2011, respectively.
Accounts payable and other liabilities decreased by PHP 229.4 million or -41.8% to PHP 319.8 million as of
March 31, 2012 compared with PHP 549.2 million as of March 31, 2011. Accounts payable and other liabilities
as of March 31, 2012 and March 31, 2011 are 13.8% and 21.6% of the total liabilities and equity as of March
31, 2012 and March 31, 2011, respectively. Comprising accounts payable and other liabilities are payables to
beneficiaries of PHP 232.9 million, payables to agents, couriers and trading clients of PHP 34.6 million,
accrued expenses of PHP 17.2 million, withholding tax payable of PHP 2.2 million, advances from related
parties of PHP 12.2 million, income tax payable of PHP 16.4 million, payables to government agencies of PHP
1.4 million, and other non-trade payables of PHP 2.9 million. Noncurrent liabilities amounting to PHP 0.12
million as of March 31, 2012 consist of retirement liability of PHP 0.09 million and deferred tax liability of PHP
0.03 million.
The Company’s stockholders’ equity as of March 31, 2012 stood at PHP 1.387 billion, higher by PHP 100.6
million or 7.8% against the March 31, 2011 level of PHP 1.286 billion due to higher net income and stock
dividend. Total stockholders’ equity as of March 31, 2012 and March 31, 2011 are 59.7% and 50.7% of the
total liabilities and equity as of March 31, 2012 and March 31, 2011, respectively.
The Bangko Sentral ng Pilipinas reported last month that money transfers by overseas Filipinos grew by 5.8%
to USD1.587 billion in February 2012 from USD1.5 billion a year earlier. On a year-to-date basis, the total
remittance inflows amounted to USD3.144 billion in January to February of 2012, growing by 5.6% against the
inflows of USD2.977 billion in the first two (2) months of 2011. The continued inflow of remittances is
supported by the sustained demand for Filipino manpower in various foreign labor markets. The Philippine
Overseas Employment Administration (POEA) recently announced that it expects over a million highly skilled
Filipino workers would be hired abroad this year. The latest data from the POEA showed that for the period
January-March 2012, job orders for professional and technical, service and production workers increased
24.6% to 200,010 compared with the same period last year. These are mainly intended for employment
opportunities in Saudi Arabia, United Arab Emirates, Qatar, Taiwan, Kuwait, Singapore and Hong Kong,
among others.
Below are the comparative key performance indicators of the Company and its subsidiaries:
Mar. 31, 2012 Mar. 31, 2011
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 0.06 PHP 0.05
Sales Growth
Total transaction value in USD in present period over the
previous year
47% 9%
Gross Income Revenue less total cost of services (PHP millions) 148.2 165.5
* 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, 2012 and March 31, 2011 are PHP
0.06 and PHP 0.05, respectively.
15

Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Mar. 31, 2012 Mar. 31, 2011
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
0.5% 5%
Return on Assets (ROA) Net income over average total assets during the period 0.2% 2%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 0.46 PHP 3.12
Sales Growth
Total transaction value in USD in present period over the
previous year
-5% 7%
Gross Income Revenue less total cost of services (PHP millions) 21.9 23.7
Lucky Star Management Limited
Mar. 31, 2012 Mar. 31, 2011
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
-7% 19%
Return on Assets (ROA) Net income over average total assets during the period -2% 9%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 3.08) PHP 10.39
Sales Growth
Total transaction value in USD in present period over the
previous year
-14% -29%
Gross Income Revenue less total cost of services (PHP millions) 3.5 6.7
IRemit Global Remittance Limited
Mar. 31, 2012 Mar. 31, 2011
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
-96% 5%
Return on Assets (ROA) Net income over average total assets during the period -3% 1%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 20,881.96) PHP 1,650.29
Sales Growth
Total transaction value in USD in present period over the
previous year
61% 15%
Gross Income Revenue less total cost of services (PHP millions) 18.4 10.5
I-Remit Australia Pty Ltd
Mar. 31, 2012 Mar. 31, 2011
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
0.1% 0.1%
Return on Assets (ROA) Net income over average total assets during the period 0.04% 0.1%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 2,225.00 PHP 2,433.00
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 0.05 0.1
Worldwide Exchange Pty Ltd
Mar. 31, 2012 Mar. 31, 2011
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
0.3% -40%
Return on Assets (ROA) Net income over average total assets during the period 0.04% -5%
Earnings per Share (EPS) Net income over average number of outstanding shares PHP 0.13 (PHP 15.52)
Sales Growth
Total transaction value in USD in present period over the
previous year
32% 21%
Gross Income Revenue less total cost of services (PHP millions) 9.2 7.5
I-Remit New Zealand Limited
Mar. 31, 2012 Mar. 31, 2011
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
19% 11%
Return on Assets (ROA) Net income over average total assets during the period -14% -6%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 1,908.51) (PHP 719.31)
Sales Growth
Total transaction value in USD in present period over the
previous year
39% 19%
Gross Income Revenue less total cost of services (PHP millions) -0.7 1.4
16

IREMIT Remittance Consulting GmbH
Mar. 31, 2012 Mar. 31, 2011
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
-22% 149%
Return on Assets (ROA) Net income over average total assets during the period -4% -22%
Earnings per Share (EPS) Net income over average number of outstanding shares (PHP 35.28) (PHP 180.05)
Sales Growth
Total transaction value in USD in present period over the
previous year
-99% 19%
Gross Income Revenue less total cost of services (PHP millions) 0.03 8.3
Power Star Asia Group Limited
Mar. 31, 2012 Mar. 31, 2011
Performance Indicator Definition
(Three Months) (Three Months)
Return on Equity (ROE)
Net income over average stockholders’ equity during the
period
8% 11%
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 22.46 PHP 22.72
Sales Growth
Total transaction value in USD in present period over the
previous year
- -
Gross Income Revenue less total cost of services (PHP millions) 17.2 21.7
17

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

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

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

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

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

- 5 -
Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous financial year except for
the adoption of the following new and amended PFRS, Philippine Accounting Standards (PAS)
and Philippine Interpretations which became effective on January 1, 2011:
• PAS 24 Amendment, Related Party Disclosures
• PAS 32 Amendment, Financial Instruments: Presentation - Classification of Rights Issues
• Philippine Interpretation International Financial Reporting Interpretations Committee (IFRIC)
14 Amendment, Prepayments of a Minimum Funding Requirement
• Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity
Instruments
The adoption of new standards, amendments and interpretations above did not have impact to the
Group except for the adoption of PAS 24 Amendment, Related Party Transactions.
PAS 24 Amendment, Related Party Transactions
PAS 24 clarifies the definitions of a related party. The new definitions emphasize a symmetrical
view of related party relationships and clarify the circumstances in which persons and key
management personnel affect related party relationships of an entity. In addition, the amendment
introduces an exemption from the general related party disclosure requirements for transactions
with government and entities that are controlled, jointly controlled or significantly influenced by
the same government as the reporting entity. The amendment only affects the disclosures and has
no impact on the Group’s financial position or performance.
Improvements to PFRS 2010
Improvements to PFRSs, an omnibus of amendments to standards, deal primarily with a view to
removing inconsistencies and clarifying wording. There are separate transitional provisions for
each standard. The adoption of the following amendments resulted in changes to accounting
policies but did not have any impact on the financial position or performance of the Group.
PFRS 3, Business Combinations (Revised)
The measurement options available for noncontrolling interest (NCI) were amended. Only
components of NCI that constitute a present ownership interest that entitles their holder to a
proportionate share of the entity’s net assets in the event of liquidation should be measured at
either fair value or at the present ownership instruments’ proportionate share of the acquiree’s
identifiable net assets. All other components are to be measured at their acquisition date fair
value.
The amendments to PFRS 3 are effective for annual periods beginning on or after July 1, 2011.
The Group, however, adopted these as of January 1, 2011 and changed its accounting policy
accordingly as the amendment was issued to eliminate unintended consequences that may arise
from the adoption of PFRS 3.
PFRS 7, Financial Instruments - Disclosures
The amendment was intended to simplify the disclosures provided by reducing the volume of
disclosures around collateral held and improving disclosures by requiring qualitative information
to put the quantitative information in context. The Group reflects the revised disclosure
requirements in Note 4.
*SGVMC116502*

- 6 -
PAS 1, Presentation of Financial Statements
The amendment clarifies that an entity may present an analysis of each component of other
comprehensive income maybe either in the statement of changes in equity or in the notes to the
financial statements.
Other amendments resulting from the 2010 Improvements to PFRSs to the following standards did
not have any impact on the accounting policies, financial position or performance of the Group:
• PFRS 3, Business Combinations (Contingent consideration arising from business combination
prior to adoption of PFRS 3 (as revised in 2008))
• PFRS 3, Business Combinations (Un-replaced and voluntarily replaced share-based payment
awards)
• PAS 27, Consolidated and Separate Financial Statements
• PAS 34, Interim Financial Statements
The following interpretation and amendments to interpretations did not have any impact on the
accounting policies, financial position or performance of the Group:
• Philippine Interpretation IFRIC 13, Customer Loyalty Programmes (determining the fair value
of award credits)
• Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity
Instruments
Foreign Currency Translation
The consolidated financial statements are presented in Philippine peso, which is the Parent
Company’s functional currency. Each subsidiary in the Group determines its own functional
currency and items included in the financial statements of each entity are measured using that
functional currency.
Transactions and balances
Transactions denominated in foreign currencies are recorded using the exchange rate at the date of
the transaction. Outstanding financial assets and liabilities denominated in foreign currencies are
restated in Philippine pesos based on the Philippine Dealing System (PDS) closing rate prevailing
at the balance sheet date. Exchange differences arising on translation are taken directly to the
consolidated statement of income.
Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rates as at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value was determined. Any goodwill arising on the acquisition of a foreign
operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on
the acquisition are treated as assets and liabilities of the foreign operation and translated at the
closing rate.
Foreign subsidiaries
As of the balance sheet date, the assets and liabilities of subsidiaries with functional currency
differs from the Philippine peso are translated into the Parent Company’s presentation currency
(the Philippine peso) at the PDS closing rate prevailing at the balance sheet date, and their income
and expenses are translated using the PDSWAR for the year. Exchange differences arising on
translation are recognized in other comprehensive income. Upon disposal of a foreign entity, the
*SGVMC116502*

- 7 -
deferred cumulative amount previously recognized in other comprehensive income (included
under ‘Cumulative translation adjustment’ in the equity section of the consolidated balance sheet)
relating to the particular foreign operation is recognized in the consolidated statement of income.
Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash, with original maturities of
three months or less from the dates of placement and that are subject to an insignificant risk of
changes in fair value.
Financial Instruments
Initial Recognition
Financial instruments within the scope of PAS 39 are classified as financial assets at FVPL, loans
and receivables, held-to-maturity (HTM) investments, available-for-sale (AFS) investments,
financial liabilities at FVPL and other financial liabilities. The classification of financial
instruments at initial recognition depends on the purpose for which the financial instruments were
acquired and their characteristics. All financial assets and financial liabilities are recognized
initially at fair value plus any directly attributable cost of acquisition or issue, except in the case of
financial assets and financial liabilities at FVPL. Management determines the classification of its
instruments at initial recognition and, where allowed and appropriate, re-evaluates such
designation at every balance sheet date.
Financial instruments are recognized in the consolidated balance sheet when the Group becomes a
party to the contractual provisions of the instrument. In the case of regular way of purchase or
sale of financial assets, recognition and derecognition, as applicable, are done using settlement
date accounting. Settlement date accounting refers to (a) recognition of an asset on the day it is
received by the Group, and (b) the derecognition of an asset and recognition of any gain or loss on
disposal on the day that it is delivered by the Group.
The subsequent measurement bases for financial instruments depend on its classification.
As of December 31, 2011 and 2010, the Group has no AFS investments, HTM investments and
financial liabilities at FVPL.
Subsequent Measurement
Financial assets at FVPL
Financial assets at FVPL includes financial assets held for trading (HFT) and financial assets
designated upon initial recognition at fair value through profit or loss. Financial assets are
classified as HFT if they are acquired for the purpose of selling and repurchasing in the near term.
Included in this classification are debt securities which have been acquired principally for trading
purposes.
The Group evaluates its HFT investments to determine whether the intention to sell them in the
near term is still appropriate. When in rare circumstances the Group is unable to trade these
financial assets due to inactive markets and management’s intention to sell them in the foreseeable
future significantly changes, the Group may elect to reclassify these financial assets. The
reclassification to loans and receivables, AFS or HTM depends on the nature of the asset. This
evaluation does not affect any financial assets designated at FVPL using the fair value option at
designation, these instruments cannot be reclassified after initial recognition.
*SGVMC116502*

- 8 -
HFT investments are recorded in the consolidated balance sheet at fair value. Changes in fair
value are recognized as ‘Net trading gains’ in the consolidated statement of income. Interest
earned is recognized as interest income included under ‘Other income’ in the consolidated
statement of income. Quoted market prices, when available, are used to determine the fair value
of these financial instruments. If quoted market prices are not available, their fair values are
estimated based on inputs that are observable in the market.
Classified under this category are the Group’s HFT investments in debt and equity securities.
Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. After initial measurement, receivables are carried at amortized
cost using the effective interest method less any allowance for credit losses. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees and costs that
are an integral part of the effective interest rate (EIR). Gains and losses are recognized in the
consolidated statement of income when the receivables are derecognized or impaired, as well as
through the amortization process. Receivables are classified as current assets when the Group
expects to realize or collect the asset within twelve months from the balance sheet date. Otherwise,
these are classified as non-current assets.
Classified under this category are the Group’s ‘Cash and cash equivalents’, ‘Accounts receivable’,
‘Other receivables’ and refundable deposits included under ‘Other noncurrent assets’.
Other financial liabilities
Issued financial instruments or their components, which are not designated as at FVPL, are
classified as other financial liability, where the substance of the contractual arrangement results in
the Group having an obligation either to deliver cash or another financial asset to the holder, or to
satisfy the obligation other than by the exchange of a fixed amount of cash or another financial
asset for a fixed number of its own equity shares. These include liabilities arising from operations
or borrowings. The components of issued financial instruments that contain both liability and
equity elements are accounted for separately, with the equity component being assigned the
residual amount after deducting from the instrument as a whole the amount separately determined
as the fair value of the liability component on the date of issue.
After initial measurement, other financial liabilities are subsequently measured at amortized cost
using the EIR method.
Other financial liabilities are classified as current liabilities when the Group expects to settle the
liability within twelve months from the balance sheet date. Otherwise, these are classified as noncurrent
liabilities.
Other financial liabilities include ‘Beneficiaries and other payables’ and ‘Interest-bearing loans’.
Determination of fair value
The fair value for financial instruments traded in active markets at the balance sheet date is based
on their quoted market prices or dealer price quotations (bid price for long positions and ask price
for short positions), without any deduction for transaction costs. When current bid and ask prices
are not available, the price of the most recent transaction provides evidence of the current fair
value as long as there has not been a significant change in economic circumstances since the time
of the transaction.
*SGVMC116502*

- 9 -
For all other financial instruments not listed in an active market, the fair value is determined by
using appropriate valuation methodologies. Valuation methodologies include net present value
techniques, comparison to similar instruments for which market observable prices exist, option
pricing models, and other relevant valuation models.
Day 1 difference
Where the transaction price in a non-active market is different from the fair value from other
observable current market transactions in the same instrument or based on a valuation technique
whose variables include only data from an observable market, the Group recognizes the difference
between the transaction price and fair value (a Day 1 difference) in the consolidated statement of
income unless it qualifies for recognition as some other type of asset. In cases where use is made
of data which is not observable, the difference between the transaction price and model value is
only recognized in the consolidated statement of income when the inputs become observable or
when the instrument is derecognized. For each transaction, the Group determines the appropriate
method of recognizing the Day 1 difference amount.
Derecognition of Financial Assets and Liabilities
Financial asset
A financial asset (or, where applicable a part of a financial asset or part of a group of similar
financial assets) is derecognized when:
• the rights to receive cash flows from the asset have expired;
• the Group retains the right to receive cash flows from the asset, but has assumed an obligation
to pay them in full without material delay to a third part under a ‘pass through’ arrangement;
or
• the Group has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a
pass-through arrangement, and has neither transferred nor retained substantially all the risks and
rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the
Group’s continuing involvement in the asset. Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the lower of the original carrying amount of the
asset and the maximum amount of consideration that the Group could be required to repay.
Financial liability
A financial liability is derecognized when the obligation under the liability is discharged,
cancelled or has expired. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original liability
and the recognition of a new liability, and the difference in the respective carrying amounts is
recognized in the consolidated statement of income.
Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the consolidated
balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, or to realize the asset and settle the
liability simultaneously.
*SGVMC116502*

- 10 -
Impairment of Financial Assets
The Group assesses at each balance sheet date whether there is an objective evidence that a
financial asset or group of financial assets is impaired. A financial asset or a group of financial
assets is deemed to be impaired if, and only if, there is an objective evidence of impairment as a
result of one or more events that has occurred after the initial recognition of the asset (an incurred
‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the
financial asset or the group of financial assets that can be reliably estimated. Evidence of
impairment may include indications that the borrower or a group of borrowers is experiencing
significant financial difficulty, default or delinquency in interest or principal payments, the
probability that they will enter bankruptcy or other financial reorganization, and where there are
observable data that indicates that there is a measurable decrease in the estimated future cash
flows, such as changes in arrears or economic conditions that correlate with defaults.
Financial assets carried at amortized cost
For financial assets carried at amortized cost, the Group first assesses whether objective evidence
of impairment exists individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant.
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is
measured as the difference between the asset’s carrying amount and the present value of the
estimated future cash flows (excluding future credit losses that have not been incurred). The
carrying amount of the asset is reduced through the use of an allowance account and the amount of
loss is charged to the consolidated statement of income. Interest income continues to be
recognized based on the original EIR of the asset. Receivables, together with the associated
allowance accounts, are written off when there is no realistic prospect of future recovery and all
collateral has been realized. If subsequently, the amount of the estimated impairment loss
decreases because of an event occurring after the impairment was recognized, the previously
recognized impairment loss is reduced by adjusting the allowance account. If a future write-off is
later recovered, any amounts formerly charged are credited to profit or loss.
If the Group determines that no objective evidence of impairment exists for an individually
assessed financial asset, whether significant or not, it includes the asset in a group of financial
assets with similar credit risk characteristics and collectively assesses for impairment. Those
characteristics are relevant to the estimation of future cash flows for groups of such assets by
being indicative of the debtors’ ability to pay all amounts due according to the contractual terms of
the assets being evaluated. Assets that are individually assessed for impairment and for which an
impairment loss is, or continues to be, recognized are not included in a collective assessment for
impairment.
The present value of the estimated future cash flows is discounted at the financial asset’s original
EIR. If a financial asset has a variable interest rate, the discount rate for measuring any
impairment loss is the current EIR, adjusted for the original credit risk premium.
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis
of such credit risk characteristics as geographical classification. Future cash flows in a group of
financial assets that are collectively evaluated for impairment are estimated on the basis of
historical loss experience for assets with credit risk characteristics similar to those in the group.
Historical loss experience is adjusted on the basis of current observable data to reflect the effects
of current conditions that did not affect the period on which the historical loss experience is based
and to remove the effects of conditions in the historical period that do not exist currently.
*SGVMC116502*

- 11 -
Estimates of changes in future cash flows reflect, and are directionally consistent with changes in
related observable data from period to period (such as changes in payment status, or other factors
that are indicative of incurred losses in the group and their magnitude). The methodology and
assumptions used for estimating future cash flows are reviewed regularly by the Group to reduce
any differences between loss estimates and actual loss experience.
Investments in Associates
The Group’s investments in its associates are accounted for using the equity method of
accounting. An associate is an entity in which the Group has significant influence. The Group’s
investments in associates include its 49.00% interest in ISPL and HKHCL, entities based in
Singapore and Taiwan, respectively.
Under the equity method, the investment in the associate is carried in the consolidated balance
sheet at cost plus post acquisition changes in the Group’s share in the net assets of the associate.
The consolidated statement of income reflects the share in the results of operations of the
associate. Where there has been a change recognized directly in the equity of the associate, the
Group recognizes its share of any changes, as applicable, in the consolidated statement of changes
in equity. Unrealized gains and losses resulting from transactions between the Group and the
associate are eliminated to the extent of the interest in the associate.
The Group’s share in the net income (loss) of its associates is shown in the consolidated statement
of income as ‘Equity in net earnings of associates’. This is the profit attributable to equity holders
of the associate and therefore is profit after tax and noncontrolling interests in the subsidiaries of
the associates.
The financial statements of the associates are prepared for the same reporting period as the Parent
Company.
After application of the equity method, the Group determines whether it is necessary to recognize
an impairment loss on the Group’s investment in its associates. The Group determines at each
balance sheet date whether there is any objective evidence that the investment in the associate is
impaired. If this is the case, the Group calculates the amount of impairment as the difference
between the recoverable amount of the associate and its carrying value and recognizes the amount
as impairment loss in the consolidated statement of income.
Upon loss of significant influence over the associate, the Group measures and recognizes any
remaining investment at its fair value. Any difference between the carrying amount of the
associate upon loss of significant influence and the fair value of the retaining investment and
proceeds from disposal is recognized in profit or loss.
Property and Equipment
Property and equipment is stated at cost less accumulated depreciation and amortization and any
impairment in value.
The initial cost of property and equipment comprises its purchase price and any directly
attributable costs of bringing the property and equipment to its working condition and location for
its intended use.
*SGVMC116502*

- 12 -
Expenditures incurred after the property and equipment have been put into operation, such as
repairs and maintenance are normally charged to operations in the year in which the costs are
incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in
an increase in the future economic benefits expected to be obtained from the use of an item of
property and equipment beyond its originally assessed standard of performance, the expenditures
are capitalized as an additional cost of property and equipment.
Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of
the property and equipment as follows:
Office and communication equipment 3 years
Transportation and delivery equipment 3 to 5 years
Furniture and fixtures 3 to 5 years
Leasehold improvements 5 years or the term of the lease,
whichever is shorter
The carrying values of property and equipment are reviewed for impairment when events or
changes in circumstances indicate the carrying value may not be recoverable. If any such
indication exists and where the carrying values exceed the estimated recoverable amount, the asset
or CGU are written down to their recoverable amount (see policy on Impairment of Nonfinancial
Assets).
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of
the asset) is included in the consolidated statement of income in the year the asset is derecognized.
The asset’s residual values, useful lives and methods of depreciation and amortization are
reviewed, and adjusted if appropriate, at each financial year-end to ensure that these are consistent
with the expected pattern of economic benefits from the items of property and equipment.
Intangible Assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less any accumulated amortization and any
accumulated impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite.
Intangibles assets with finite lives are amortized over the useful economic life and assessed for
impairment whenever there is an indication that the intangible assets may be impaired. The
amortization period and the amortization method for an intangible asset with a finite useful life are
reviewed at least at each balance sheet date. Changes in the expected useful life or the expected
pattern of consumption of future economic benefits embodied in the asset is accounted for by
changing the amortization period or method, as appropriate, and treated as changes in accounting
estimates. The amortization expense on intangible assets with finite lives is recognized in the
consolidated statement of income in the expense category consistent with the function of the
intangible asset. Intangible assets with indefinite useful lives are tested for impairment annually
either individually or at the CGU level. Such intangibles are not amortized. The useful life of an
intangible asset with an indefinite life is reviewed annually to determine whether indefinite life
assessment continues to be supportable. If not, the change in the useful life assessment from
indefinite to finite is made on a prospective basis.
*SGVMC116502*

- 13 -
Gains or losses arising from the derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in the
consolidated statement of income when the asset is derecognized.
Software costs
Software costs are carried at cost less accumulated amortization and any impairment in value. The
cost of the asset is the amount of cash or cash equivalents paid or the fair value of the other
considerations given up to acquire the asset at the time of its acquisition or production. Software
costs are amortized on a straight-line basis over the estimated useful life of three (3) years.
Goodwill
Any excess of the acquisition cost over the fair values of the identifiable net assets acquired is
recognized as goodwill. Goodwill represents the excess of the acquisition cost over the fair value
of their identifiable net assets at the date of acquisition of IRCL, IGRL, IAPL, LSML and WEPL
(see Note 13). Following initial recognition, goodwill is measured at cost less any accumulated
impairment losses. Goodwill is reviewed for impairment annually (see accounting policy on
Impairment of Nonfinancial Assets).
Impairment of Nonfinancial assets
Investments in associates
The Group assesses at each balance sheet date whether there is any indication that its investments
in associates may be impaired. If any indication exists, the Group estimates the asset’s
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value
less cost to sell and its value in use. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.
Property and equipment and software costs
At each balance sheet date, the Group assesses whether there is any indication that its property and
equipment and software costs may be impaired. When an indicator of impairment exists or when
an annual impairment testing for an asset is required, the Group makes a formal estimate of
recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and
its value in use and is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or groups of assets, in which case
the recoverable amount is assessed as part of the CGU to which it belongs. Where the carrying
amount of an asset (or CGU) exceeds its recoverable amount, the asset (or CGU) is considered
impaired and is written down to its recoverable amount. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset (or
CGU). In determining fair value less cost to sell, recent market transactions are taken into
account, if available. If no such transactions can be identified, an appropriate evaluation model is
used. These calculations are corroborated with available fair value indicators.
An impairment loss is charged to operations in the year in which it arises, unless the asset is
carried at a revalued amount, in which case the impairment loss is charged to the revaluation
increment of the said asset.
An assessment is made at each balance sheet date as to whether there is any indication that
previously recognized impairment losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A previously recognized impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable
*SGVMC116502*

- 14 -
amount since the last impairment loss was recognized. If that is the case, the carrying amount of
the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying
amount that would have been determined, net of depreciation and amortization, had no impairment
loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated
statement of income unless the asset is carried at a revalued amount, in which case the reversal is
treated as a revaluation increase. After such a reversal, the depreciation and amortization expense
is adjusted in future years to allocate the asset’s revised carrying amount, less any residual value,
on a systematic basis over its remaining life.
Goodwill
Goodwill is reviewed for impairment annually or more frequently if events or changes in
circumstances indicate that the carrying value may be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of the CGU (or group
of CGUs) to which the goodwill relates. Where the recoverable amount of the CGU (or group of
CGUs) is less than the carrying amount of the CGU (or group of CGUs) to which goodwill has
been allocated, an impairment loss is recognized immediately in the consolidated statement of
income. Impairment losses relating to goodwill cannot be reversed for subsequent increases in its
recoverable amount in future periods. The Group performs its annual impairment test of goodwill
at the balance sheet date.
Input Value Added Tax (VAT)
Input VAT represents VAT imposed on the Parent Company by its suppliers for the acquisition of
goods and services as required by Philippine taxation laws and regulations. This will be claimed
as tax credits. Input VAT is stated at its estimated net realizable values.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Group and the revenue can be reliably measured. The Group assesses its revenue arrangements
against specific criteria in order to determine if it is acting as principal or agent. The following
specific recognition criteria must also be met before revenue is recognized:
Delivery fees
Revenue from delivery fees is recognized as the service is rendered net of amounts payable to
principals (i.e., partner remittance companies) for fees billed on their behalf.
Service revenue
Service revenue is recognized when the service is rendered.
Interest income
Interest on financial instruments measured at amortized cost and interest bearing HFT investments
is recognized based on the effective interest rate (EIR) method.
The EIR method is a method of calculating the amortized cost of a financial asset or a financial
liability and allocating the interest income or interest expense over the relevant period. The EIR is
the rate that exactly discounts estimated future cash payments or receipts throughout the expected
life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of
the financial asset or financial liability. When calculating the EIR, the Group estimates cash flows
from the financial instrument (for example, prepayment options) but does not consider future
credit losses. The calculation includes all fees and points paid or received between parties to the
contract that are an integral part of the EIR, transaction costs and all other premiums or discounts.
*SGVMC116502*

- 15 -
Once a financial asset or a group of financial assets has been written down as a result of an
impairment loss, interest income is recognized thereafter using the rate of interest used to discount
the future cash flows for the purpose of measuring the impairment loss.
Net trading gain/loss
Trading gain/loss represents results arising from trading activities, including all gains and losses
from changes in fair value of HFT investments.
Other income
Other income from processing remittance is recognized as the service is rendered.
Rebates
Rebates pertaining to refunds of bank service charges are recognized upon collection.
Cost and Expenses
Costs and expenses encompass losses as well as those expenses that arise in the course of the
ordinary business activities of the Group. The following specific recognition criteria must also be
met before costs and expenses are recognized:
Cost of services
This includes all expenses associated with the specific delivery fees. Such costs are recognized
when the related delivery fees have been recognized.
Operating expenses
Operating expenses constitute costs incurred related to advertising and administering the business
and are recognized when incurred.
Taxes and licenses
This includes all other taxes, local and national, including real estate taxes, licenses and permit
fees included under ‘Other operating expenses’ in the consolidated statement of income.
Retirement Benefits
The Parent Company has a noncontributory defined benefit retirement plan administered by a
trustee, covering its permanent employees.
The retirement cost of the Parent Company is determined using the projected unit credit method.
Under this method, the current service cost is the present value of retirement benefits payable in
the future with respect to services rendered in the current period.
The liability recognized in the consolidated balance sheet in respect of defined benefit retirement
plan is the present value of the defined benefit obligation at the balance sheet date less the fair
value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past
service costs. The defined benefit obligation is calculated annually by an independent actuary
using the projected unit credit method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rates on Philippine
government bonds that have terms to maturity approximating the terms of the related retirement
liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are credited to or charged against income when the net cumulative unrecognized
actuarial gains and losses at the end of the previous period exceeded 10.00% of the higher of the
defined benefit obligation and the fair value of plan assets at that date. These gains or losses are
recognized over the expected average remaining working lives of the employees participating in
the plan.
*SGVMC116502*

- 16 -
Past-service costs, if any, are recognized immediately in income, unless the changes to the
retirement plan are conditional on the employees remaining in service for a specified period of
time (the vesting period). In this case, the past-service costs are amortized on a straight-line basis
over the vesting period.
The defined benefit asset or liability comprises the present value of the defined benefit obligation
less past service costs not yet recognized and less the fair value of plan assets out of which the
obligations are to be settled directly. The value of any asset is restricted to the sum of any past
service cost not yet recognized and the present value of any economic benefits available in the
form of refunds from the plan or reductions in the future contributions to the plan.
Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of
the arrangement at the inception date of whether the fulfillment of the arrangement is dependent
on the use of a specific asset or assets or the arrangement conveys a right to use the asset. A
reassessment is made after inception of the lease only if one of the following applies:
(a) there is a change in contractual terms, other than a renewal or extension of the arrangement;
(b) a renewal option is exercised or extension granted, unless the term of the renewal or extension
was initially included in the lease term;
(c) there is a change in the determination of whether fulfillment is dependent on a specified asset;
or
(d) there is a substantial change to the asset.
When a reassessment is made, lease accounting shall commence or cease from the date when the
change in circumstances gave rise to the reassessment for scenarios (a), (c), or (d) and at the date
of renewal or extension for scenario (b).
Group as a lessee
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Operating lease payments are recognized as an expense in the
consolidated statement of income on a straight-line basis over the lease term.
Group as a lessor
Leases in which the Group does not transfer substantially all the risks and benefits of ownership of
the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating
lease are added to the carrying amount of the leased asset and recognized over the lease term on
the same basis as rental income. Contingent rents are recognized as revenue in the period in which
they are earned.
Share-based Payment
The Parent Company granted a stock purchase program to certain officers, employees and
individuals (see Note 19) that is subject to a lock-up or vesting period of two (2) years and which
ended on September 19, 2009. The Parent Company accounted for the share-based payment as an
equity-settled transaction. The cost of equity-settled transactions is measured by reference to the
fair value of the equity instrument at the date at which they are granted. The expense is
recognized as part of ‘Salaries, wages and employee benefits’ in the consolidated statement of
income over the lock-up period of two (2) years. The cumulative expense recognized for equitysettled
transactions at each balance sheet date until the vesting date reflects the extent to which the
vesting period has expired and the Group’s best estimate of the number of equity instruments that
will ultimately vest. The expense in the consolidated statement of income for the period
represents the movement in cumulative expense recognized at the beginning and end of the period.
*SGVMC116502*

- 17 -
Income Taxes
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantially enacted at the balance sheet date.
Deferred tax
Deferred tax is provided, using the balance sheet liability method, on all temporary differences at
the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, including asset
revaluations. Deferred tax assets are recognized for all deductible temporary differences,
carryforward of unused tax credits from excess minimum corporate income tax (MCIT) over the
regular corporate income tax (RCIT), if any, and unused net operating loss carryover (NOLCO), if
any, to the extent that it is probable that taxable income will be available against which the
deductible temporary differences and carryforward of unused tax credits from excess MCIT over
RCIT and unused NOLCO can be utilized.
Deferred tax liabilities are not provided on non-taxable temporary differences associated with
investments in associates where the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the foreseeable
future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable income will be available to allow all
or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at
each balance sheet date and are recognized to the extent that it has become probable that future
taxable income will allow the deferred tax assets to be recovered.
Deferred tax assets and deferred tax liabilities are measured at the tax rates that are applicable to
the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantially enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Current tax and deferred tax relating to items recognized directly in equity are also recognized in
equity and not in the consolidated statement of income.
Discontinued Operations
A discontinued operation is a component of the Group’s business that represents a separate major
line of business or geographical area of operations that had been disposed of or is held for sale, or
is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued
operation occurs upon disposal or when the operation meets the criteria to be classified as held for
sale, if earlier. When an operation is classified as a discontinued operation, the comparative
consolidated statement of income are re-presented as if the operation had been discontinued from
the start of the comparative period. In the consolidated statement of income of the reporting
period, and of the comparable period of the previous year, income and expenses from
*SGVMC116502*

- 18 -
discontinued operations are reported separately from normal income and expenses down to the
level of profit after taxes. The resulting profit or loss (after taxes) is reported separately in the
consolidated statement of income.
Borrowing Costs
Borrowing costs are recognized as an expense when incurred.
Equity
Capital stock is measured at par value for all shares issued and outstanding. When the shares are
sold at a premium, the difference between the proceeds and the par value is credited to ‘Capital
paid-in excess of par value’ account. Direct costs incurred related to issuance of equity, such as
underwriting, accounting and legal fees, printing costs and taxes are charged to ‘Capital paid-in
excess of par value’ account. If the ‘Capital paid-in excess of par value’ is not sufficient, the
excess is charged to profit or loss.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction. The excess of acquisition cost over the carrying value of the noncontrolling
interest is charged against the ‘Capital paid-in excess of par value’.
When the Group issues more than one class of stock, a separate account is maintained for each
class of stock and the number of shares issued.
‘Retained earnings’ represents accumulated earnings (losses) of the Group less dividends declared.
Own equity instruments which are reacquired (treasury shares) are recognized at cost as ‘Treasury
stock’ and deducted from equity. No gain or loss is recognized in the consolidated statement of
income on the purchase, sale, issue or cancellation of the Group’s own equity instruments. Any
difference between the carrying amount and the consideration is recognized in ‘Capital paid-in
excess of par value’.
Earnings per Share
Basic earnings per share (EPS) is computed by dividing net income for the year attributable to the
equity holders of the Parent Company by the weighted average number of common shares issued
and outstanding during the year, after giving retroactive effect to any stock dividends or stock
splits, if any, declared during the year. Diluted EPS is computed by dividing net income
applicable to common stockholders attributable to equity holder of the Parent Company by the
weighted average number of common shares issued and outstanding during the year after giving
effect to assumed conversion of dilutive potential common shares.
The weighted average number of ordinary shares outstanding during the period is the number of
ordinary shares outstanding at the beginning of the period, adjusted by the number of ordinary
shares bought back or issued during the period multiplied by a time-weighting factor. The timeweighting
factor is the number of days that the shares are outstanding as a proportion of the total
number of days in the period; a reasonable approximation of the weighted average is adequate in
many circumstances.
Dividends
Cash dividends on common shares are recognized as a liability and deducted from equity when
declared and approved by the Board of Directors (BOD) of the Parent Company. Stock dividends
are deducted from equity when declared and approved by the BOD and stockholders of the Parent
Company.
*SGVMC116502*

- 19 -
Related party relationships and transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of assets embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. Where the Group expects a provision to be reimbursed, the reimbursement is
recognized as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the consolidated statement of income, net of any
reimbursement.
Contingencies
Contingent liabilities are not recognized in the consolidated financial statements. These are
disclosed unless the possibility of an outflow of resources embodying economic benefits is
remote. A contingent asset is not recognized in the consolidated financial statements but disclosed
when an inflow of economic benefits is probable.
Events After the Reporting Period
Post year-end events that provide additional information about the Group’s financial position at
the balance sheet date (adjusting events) are reflected in the financial statements. Post year-end
events that are not adjusting events are disclosed in the notes to the consolidated financial
statements when material.
Segment Reporting
The Group’s operating businesses are organized and managed separately within a particular
economic environment or geographical area, with each segment representing a strategic business
unit which is subject to risks and rewards that are different from those of other segments.
Financial information on business segments is presented in Note 27.
Standards Issued but not Effective
The Group will adopt the following standards and interpretations enumerated below when these
become effective. Except as otherwise indicated, the Group does not expect the adoption of these
new and amended PFRS and Philippine Interpretations to have significant impact on its financial
position and performance.
Effective in 2012
PFRS 7 Amendments, Financial Instruments: Disclosures - Disclosures - Transfers of Financial
Assets
The amendments to PFRS 7 are effective for annual periods beginning on or after July 1, 2011.
The amendments will allow users of financial statements to improve their understanding of
transfer transactions of financial assets (for example, securitizations), including understanding the
possible effects of any risks that may remain with the entity that transferred the assets. The
amendments also require additional disclosures if a disproportionate amount of transfer
transactions are undertaken around the end of a reporting period.
*SGVMC116502*

- 20 -
PAS 12 Amendment, Income Taxes - Deferred Tax: Recovery of Underlying Assets
The amendment to PAS 12 is effective for annual periods beginning on or after January 1, 2012.
It provides a practical solution to the problem of assessing whether recovery of an asset will be
through use or sale. It introduces a presumption that recovery of the carrying amount of an asset
will normally be through sale.
Effective in 2013
PAS 1, Financial Statement Presentation – Presentation of Items of Other Comprehensive Income
(OCI)
The amendment effective for annual periods beginning or after July 1, 2012, changes the grouping
of items presented in OCI. Items that could be reclassified (or “recycled”) to profit or loss at a
future point in time would be presented separately from items that will never be reclassified.
PAS 27 Revised, Separate Financial Statements
The revised PAS 27 is effective for annual periods beginning on or after January 1, 2013. It
establishes that as a consequence of the new PFRS 10, Consolidated Financial Statement and
PFRS 12, Disclosure of Interests in Other Entities, what remains of PAS 27 is limited to
accounting for subsidiaries, jointly controlled entities, and associates in separate financial
statements.
PFRS 7 Revised, Financial Instruments: Disclosures – Offsetting Financial Assets and Financial
Liabilities
The revised PFRS 7 effective for annual periods beginning on or after January 1, 2013, requires an
entity to disclose information about rights of set-off and related arrangements (such as collateral
agreements). The new disclosures are required for all recognized financial instruments that are set
off in accordance with PAS 32. These disclosures also apply to recognized financial instruments
that are subject to an enforceable master netting arrangement or ‘similar agreement’, irrespective
of whether they are set-off in accordance with PAS 32.
PFRS 10, Consolidated Financial Statements
The standard, effective for annual periods beginning on or after January 1, 2013, establishes
principles for the presentation and preparation of consolidated financial statements when an entity
controls one or more other entities. The Group will assess the impact of the amendment on its
financial position and performance when they become effective.
PFRS 11, Joint Arrangements
PFRS 11 provides for a more realistic reflection of joint arrangements by focusing on the rights
and obligations of the arrangement, rather than its legal form. The standard addresses
inconsistencies in the reporting of joint arrangements by requiring a single method to account for
interests in jointly controlled entities. The standard is effective for annual periods beginning on or
after January 1, 2013.
PFRS 12, Disclosure of Interests in Other Entities
PFRS 12 is a new and comprehensive standard on disclosure requirements for all forms of
interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated
structured entities. The standard is effective for annual periods beginning on or after January 1,
2013. The Group will assess the impact of the amendment on its financial position and
performance when they become effective.
*SGVMC116502*

- 21 -
PFRS 13, Fair Value Measurement
This standard represents the completion of the joint project to establish a single source for the
requirements on how to measure fair value under PFRS. This standard does not change when an
entity is required to use fair value, but rather, describes how to measure fair value under PFRS,
when fair value is required or permitted to be used. This standard is effective for annual periods
beginning on or after January 1, 2013. The Group will assess the impact of the amendment on its
financial position and performance when they become effective.
PAS 19 Amendments, Employee Benefits - Defined Benefit Plans
The amendments focus on the following key areas: the elimination of the option to defer the
recognition of gains and losses resulting from defined benefit plans (the corridor approach); the
elimination of options for the presentation of gains and losses relating to those plans; and the
improvement of disclosure requirements that will better show the characteristics of defined benefit
plans and the risks arising from those plans. The amendments to the recognition, presentation and
disclosure requirements will ensure that the financial statements provide investors and other users
with a clear picture of an entity’s commitments resulting from defined benefit plans. The
amendments to PAS 19 are effective for annual periods beginning on or after January 1, 2013.
The Group will assess the impact of the amendment on its financial position and performance
when they become effective.
Effective 2014
PAS 32 Amendment, Financial Instruments: Presentation – Offsetting Financial Assets and
Financial Liabilities
The amendment to PAS 32 is effective for annual periods beginning on or after January 1, 2014.
This clarifies the meaning of “currently has a legally enforceable right to set-off” and the
application of the PAS 32 offsetting criteria to settlement systems (such as central clearing house
systems) which apply gross settlement mechanisms that are not simultaneous.
Effective 2015
PFRS 9, Financial Instruments: Classification and Measurement
The standard is effective for annual periods beginning on or after January 1, 2015. It reflects the
first phase on the replacement of PAS 39, Financial Instruments: Recognition and Measurement
and applies to classification and measurement of financial assets and financial liabilities as defined
in PAS 39. The Group will assess the impact of the amendment on its financial position and
performance when they become effective.
Philippine Interpretation IFRIC 15, Agreement for Construction of Real Estate
This Interpretation, effective for annual periods beginning on or after January 1, 2015, covers
accounting for revenue and associated expenses by entities that undertake the construction of real
estate directly or through subcontractors. The Interpretation requires that revenue on construction
of real estate be recognized only upon completion, except when such contract qualifies as
construction contract to be accounted for under PAS 11, Construction Contracts, or involves
rendering of services in which case revenue is recognized based on stage of completion. Contracts
involving provision of services with the construction materials and where the risks and reward of
ownership are transferred to the buyer on a continuous basis will also be accounted for based on
stage of completion.
*SGVMC116502*

- 22 -
3. Significant Accounting Judgments and Estimates
The preparation of the financial statements in compliance with PFRS requires the Group to make
judgments and estimates that affect the reported amounts of assets, liabilities, income and
expenses and disclosure of contingent assets and contingent liabilities. Future events may occur
which will cause the assumptions used in arriving at the estimates to change. The effects of any
change in estimates are reflected in the financial statements as they become reasonably
determinable.
Judgments and estimates are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Judgments
a. Functional Currency
PAS 21 requires management to use its judgment to determine the entity’s functional currency
such that it most faithfully represents the economic effects of the underlying transactions,
events and conditions that are relevant to the entity. In making this judgment, the Group
considers the following:
• the currency that mainly influences sales prices for financial instruments and services (this
will often be the currency in which sales prices for its financial instruments and services
are denominated and settled);
• the currency in which funds from financing activities are generated; and
• the currency in which receipts from operating activities are usually retained.
Each entity in the Group determines its own functional currency being the currency that
mainly influences each entity’s revenues and costs and expenses. The functional currency of
the Parent Company is the Philippine peso, while those of the Parent Company’s subsidiaries
are disclosed in Note 1.
b. Fair value of financial instruments
The fair values of financial instruments that are not quoted in active markets are determined
using valuation techniques. The fair values of financial assets and financial liabilities of the
Group are disclosed in Note 4.
c. Operating leases
Group as lessee
The Group has entered into commercial property leases as a lessee for its office premises. The
Group has determined that it has not acquired the significant risks and rewards of ownership
of the leased properties and so account for the contracts as operating leases.
Group as lessor
The Group has entered into commercial property leases as lessor. The Group has determined,
based on an evaluation of the terms and conditions of the arrangements, that it retains all the
significant risks and rewards of ownership of these properties and accounts for the contracts as
operating leases.
*SGVMC116502*

- 23 -
d. Discontinued Operations
Management has assessed that the Italy operations disposed by IRCGmbH in 2011 constitutes
a disposal group as its business operations and cash flows can be clearly distinguished
operationally (see Note 28).
e. Contingencies
The Group is currently involved in various proceedings. The estimate of the probable costs
for the resolution of these claims has been developed in consultation with outside counsel
handling the defense in these matters and is based upon an analysis of potential results. The
Group currently does not believe these proceedings will have a material effect on the Group’s
financial position. It is possible, however, that future results of operations could be materially
affected by changes in the estimates or in the effectiveness of the strategies relating to these
proceedings (see Note 29).
f. Determination of whether the Group is acting as a principal or an agent
The Group assesses its revenue arrangements against the following criteria to determine
whether it is acting as a principal or an agent:
• whether the Group has primary responsibility for providing the goods and services;
• whether the Group has inventory risk;
• whether the Group has discretion in establishing prices; and
• whether the Group bears the credit risk.
If the Group has determined it is acting as a principal, revenue is recognized on a gross basis
with the amount remitted to the other party being accounted for as part of costs and expenses.
If the Group has determined it is acting as an agent, only the net amount retained is recognized
as revenue.
The Group assessed its revenue arrangements and concluded that it is acting as principal in
some arrangements and as an agent in other arrangements.
g. Going concern
The Group’s management has made an assessment of the Group’s ability to continue as a
going concern and is satisfied that the Group has the resources to continue in business for the
foreseeable future. Furthermore, management is not aware of any material uncertainties that
may cast significant doubt upon the Group’s ability to continue as a going concern. Therefore,
the financial statements continue to be prepared on the going concern basis.
Estimates
a. Credit losses on receivables
The Group reviews its receivables at each balance sheet date to assess whether an allowance
for credit losses should be recorded in the consolidated balance sheet. In particular, judgment
by management is required in the estimation of the amount and timing of future cash flows
when determining the level of allowance required. Such estimates are based on assumptions
about a number of factors such as the length of the Group’s relationship with counterparties
(e.g., agents and couriers), current credit status, average age of accounts, collection and
historical loss experience. Actual results may differ, resulting in future changes to the
allowance.
*SGVMC116502*

- 24 -
As of December 31, 2011, accounts receivable and other receivables are carried in the
consolidated balance sheet at P=0.93 billion and P=0.11 billion, respectively (see Notes 8 and 9).
As of December 31, 2010, accounts receivable and other receivables are carried in the
consolidated balance sheet at P=1.06 billion and P=0.08 billion, respectively. The Group has
assessed that there is no need to recognize impairment losses on its receivables as of
December 31, 2011 and 2010.
b. Impairment of nonfinancial assets
(i) Investments in associates
The Group assesses impairment on its investments in associates whenever events or
changes in circumstances indicate that the carrying amount of the assets may not be
recoverable. Among others, the factors that the Group considers important, which could
trigger an impairment review on its investments in associates, include the following:
• deteriorating or poor financial condition;
• recurring net losses; and
• significant changes with an adverse effect on the associate have taken place during the
period, or will take place in the near future, in the technological, market, economic, or
legal environment in which the associate operates.
(ii) Goodwill
The Group determines whether goodwill is impaired at least on an annual basis. This
requires an estimation of the recoverable amount, which is the higher of the net selling
price or value in use of the CGU to which the goodwill is allocated.
The Group’s impairment test for goodwill is based on value in use calculations that use a
discounted cash flow model. The cash flows are derived from the budget for the next five
years and do not include restructuring activities that the Group is not yet committed to or
significant future investments that will enhance the asset base of the CGU being tested.
The recoverable amount is most sensitive to the discount rate used for the discounted cash
flow model as well as the expected future cash-inflows and the growth rate used for
extrapolation purposes.
(iii) Property and equipment and software costs
The Group assesses impairment on property and equipment and software costs whenever
events or changes in circumstances indicate that the carrying amount of the asset may not
be recoverable. The factors that the Group considers important, which could trigger an
impairment review, include the following:
• significant underperformance relative to expected historical or projected future
operating results;
• significant changes in the manner of use of the acquired assets or the strategy for
overall business; and
• significant negative industry or economic trends.
The Group recognizes an impairment loss whenever the carrying amount of the asset
exceeds its recoverable amount. The recoverable amount is determined based on the
asset’s value in use computation, which considers the present value of estimated future
cash flows expected to be generated from the continued use of the asset.
*SGVMC116502*

- 25 -
As of December 31, 2011 and 2010, no impairment losses were recognized on the Group’s
nonfinancial assets, including goodwill. The carrying values of the Group’s nonfinancial
assets follow:
2011 2010
Investments in associates (Note 11) P=23,064,091 P=20,932,236
Property and equipment - net (Note 12) 19,207,458 27,013,308
Goodwill (Note 13) 92,655,340 93,092,118
Software costs - net (Note 14) 1,450,944 2,081,746
c. Estimated useful lives of property and equipment and software costs
The Group reviews the estimated useful lives of property and equipment and software costs
annually based on the expected asset utilization after considering the expected future
technological developments and market behavior. Significant changes in these estimates
resulting from changes in the factors aforementioned could possibly affect the future results of
operations. Any decrease in the estimated useful life of the property and equipment and
software costs would decrease their respective balances and increase the recorded depreciation
and amortization (see Note 2).
As of December 31, 2011 and 2010, the carrying values of Property and equipment and
Software costs follow:
2011 2010
Property and equipment (Note 12) P=19,207,458 P=27,013,308
Software costs (Note 14) 1,450,944 2,081,746
In 2011, 2010 and 2009, the Group recognized depreciation and amortization in the
consolidated statements of income amounting to P=13.27 million, P=14.07 million and
P=14.22 million, respectively.
d. Recognition of deferred tax assets
The Group reviews the carrying amounts of deferred tax assets at each balance sheet date and
reduces it to the extent that it is no longer probable that sufficient taxable income will be
available to allow all or part of the deferred tax assets to be utilized. Significant judgment is
required to determine the amount of deferred tax assets that can be recognized, based upon the
likely timing and level of future taxable income together with future tax planning strategies.
As of December 31, 2011 and 2010, the Group’s recognized deferred tax assets amounted to
P=4.98 million and P=4.23 million, respectively. As of December 31, 2011 and 2010, the
Group’s recognized deferred tax liabilities amounted to P=31,969 and P=29,765, respectively.
As of December 31, 2011 and 2010, the Parent Company did not recognize net deferred tax
assets on existing deductible temporary differences amounting to P=2.80 million and
P=2.85 million, respectively. Management believes that it is not highly probable that these
temporary differences will be realized in the future (see Note 25).
e. Present value of net retirement obligation
The cost of defined benefit retirement plan and other post employment benefits are determined
using actuarial valuations. The actuarial valuation involves making assumptions about
discount rates, expected rates of return on assets, future salary increases, mortality rates and
future retirement increases. Due to the long-term nature of these benefits, such estimates are
subject to significant uncertainty.
*SGVMC116502*

- 26 -
The assumed discount rates were determined using the market yields on Philippine
government bonds with terms consistent with the expected employee benefit payout as of the
consolidated balance sheet date. Refer to Note 18 for the details of assumptions used in the
calculation. As of December 31, 2011 and 2010, the Group recognized retirement asset of
P=0.37 million and retirement liability of P=0.78 million, respectively. In 2011, 2010 and 2009,
the Group recognized retirement expense amounting to P=5.75 million, P=2.38 million and
P=3.02 million, respectively (see Note 18).
f. Share-based payment transactions
The Group determined the cost of its equity-settled share based program at grant date using
the price earnings multiple model taking into account the terms and conditions upon which the
shares were granted. At yearend, the Group estimates the number of equity instruments that
will ultimately vest. The Group recognized cost of equity-settled share based payments
amounting to P=1.53 million in 2009 (see Note 19). The vesting period of the stock purchase
program ended on September 19, 2009.
4. Fair Value Measurement
The following tables summarize the carrying amounts and fair values of the Group’s financial
assets and financial liabilities:
2011 2010
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
Financial assets at FVPL
Debt securities P=112,624,807 P=112,624,807 P=102,905,294 P=102,905,294
Equity securities
Loans and receivables:
Cash and cash equivalents
12,601,457 12,601,457 – –
Cash on hand 47,998,476 47,998,476 52,322,332 52,322,332
Cash in banks 806,000,555 806,000,555 821,315,584 821,315,584
Short-term deposits
Accounts receivable
37,236,592 37,236,592 10,180,031 10,180,031
Agents 930,022,937 930,022,937 1,025,016,072 1,025,016,072
Couriers
Other receivables
3,523,052 3,523,052 34,283,201 34,283,201
Nontrade receivable 72,432,683 72,432,683 – –
Related parties 25,020,726 25,020,726 26,992,977 26,992,977
Officers and employees 9,514,306 9,514,306 9,686,457 9,686,457
Interest receivable 3,624,850 3,624,850 3,512,291 3,512,291
Noncontrolling shareholders – – 39,981,243 39,981,243
Others
Other noncurrent assets:
3,838,695 3,838,695 3,267,906 3,267,906
Refundable deposits 17,291,585 17,018,242 14,099,442 12,755,091
Total
Other Financial Liabilities
Beneficiaries and other payables:
P=2,081,730,721 P=2,081,457,378 P=2,143,562,830 P=2,142,218,479
Beneficiaries P=155,140,304 P=155,140,304 P=144,960,550 P=144,960,550
Agents, couriers and trading clients 65,550,071 65,550,071 44,773,236 44,773,236
Accrued expenses 14,801,411 14,801,411 2,701,805 2,701,805
Payable to suppliers 1,391,836 1,391,836 2,958,634 2,958,634
Advances from related parties – – 1,431,156 1,431,156
Others – – 5,165 5,165
Interest-bearing loans 666,000,000 666,000,000 877,000,000 877,000,000
Total P=902,883,622 P=902,883,622 P=1,073,830,546 P=1,073,830,546
*SGVMC116502*

- 27 -
The following methods and assumptions were used to estimate the fair value of the financial
instruments:
Cash and cash equivalents, Account receivables, Other receivables, Beneficiaries and other
payables and Interest-bearing loans - carrying amounts approximate fair values due to the
relatively short-term maturities of these instruments.
Financial assets at FVPL - fair values are based on quoted market prices.
Refundable deposits - fair values are based on the present value of future cash flows discounted
using prevailing interest rates ranging from 2.71% to 8.00% and 4.05% to 10.19% as at
December 31, 2011 and 2010, respectively.
Fair Value Hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:
Level 1: quoted prices in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices); and
Level 3: inputs that are not based on observable market data or unobservable inputs.
As of December 31, 2011 and 2010, the financial instruments carried at fair value only pertains to
the Group’s financial assets at FVPL, which consist of investments in debt and equity securities
(see Note 7). The fair values of these debt and equity securities are based on quoted prices
(Level 1). There were no transfers between Level 1 and Level 2 fair value measurements, and no
transfers into and out of Level 3 fair value measurement in 2011 and 2010.
5. Financial Risk Management Objectives and Policies
The Group’s principal financial instruments mainly comprise of short-term loans from banks. The
main purpose of these financial instruments is to raise funds for the Group’s fulfillment or delivery
of remittance transactions to beneficiaries. The Group also has various other financial assets and
liabilities such as cash and cash equivalents, accounts receivables, and accounts payable to
beneficiaries, which arise directly from its remittance operations.
The main risks arising from the Group’s financial instruments are credit risk, foreign currency
risk, cash flow interest rate risk, fair value interest rate risk and liquidity risk. The BOD reviews
and approves policies for managing each of these risks and these are summarized below:
Credit Risk
Credit risk is the risk of loss resulting from the failure of a borrower or counterparty to perform its
obligations during the life of the transaction. This includes risk of non-payment by borrowers or
issuers, failed settlement of transactions and default on contracts.
The nature of its business exposes the Group to potential risk from difficulties in recovering
transaction money from foreign partners. Receivables from agents arise as a result of its
remittance operations in various regions of the globe. In order to address this, the Group has
maintained the following credit policies: (a) implement a contract that incorporates a bond and
advance payment cover such that the full amount of the transaction will be credited to the Group
*SGVMC116502*

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

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

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

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

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

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

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

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

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

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

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

- 39 -
value of the additional interest acquired was P=4.03 million. The difference of P=20.67 million
between the consideration paid and the noncontrolling interest acquired in LSML was recognized
as goodwill.
Goodwill acquired through business combinations has been allocated to five individual CGUs as
follows:
2011 2010
IGRL P=50,833,394 P=50,991,293
LSML 19,695,652 19,681,102
IAPL 8,555,256 8,624,783
IRCL 7,268,177 7,440,857
WEPL 6,302,861 6,354,083
P=92,655,340 P=93,092,118
The recoverable amount of the CGUs have been determined based on value-in-use calculation
using cash flow projections from financial budgets approved by senior management covering a
five-year period. The discount rates applied to cash flow projections range from 8.55% to 10.60%
in 2011and 7.31% to 8.83% in 2010, and cash flows beyond the five year-period were extrapolated
using a steady growth rate of 1.00% in 2011 and 0.13% to 1.43% in 2010.
The calculation of the value-in-use of the CGUs are most sensitive to the following assumptions:
• Growth rate - The forecasted growth rate is based on a very conservative steady growth rate
that does not exceed the long term average rate for the industry.
• Pre-tax discount rates - Discount rates reflect management’s estimate of the risks specific to
each CGU. This is the benchmark used by management to assess operating performance.
With regard to the assessment of the value-in-use of each CGU, management believes that no
reasonably possible change in any of the above key assumptions would cause the carrying value
of the goodwill to materially exceed its recoverable amount.
14. Software Costs - net and Other Noncurrent Assets
Movements in software costs follow:
2011 2010
Cost
Balance at beginning of year P=12,384,629 P=11,425,409
Additions 2,034,070 852,274
Disposals (941,474) –
Foreign exchange adjustment (237,921) 106,946
Balance at end of year
Accumulated Amortization
13,239,304 12,384,629
Balance at beginning of year 10,302,883 8,720,725
Amortization (Note 12) 2,006,374 1,525,720
Disposals (459,811) –
Foreign exchange adjustment (61,086) 56,438
Balance at end of year 11,788,360 10,302,883
Net Book Value at end of year P=1,450,944 P=2,081,746
*SGVMC116502*

Other noncurrent assets consist of:
- 40 -
2011 2010
Input VAT P=21,242,725 P=28,493,804
Refundable deposits 17,291,585 14,099,442
Deferred input VAT 326,057 350,550
Others 44,000 44,000
P=38,904,367 P=42,987,796
The Parent Company has applied for tax credits on Input VAT with the BIR and is waiting for the
issuance of Tax Credit Certificates (TCCs). In 2011, the BIR issued two tax credit certificates to
the Parent Company for its Input VAT filed for years 2005 and 2006 amounting to P=1.71 million
and P=3.82 million, respectively. Management of the Company believes that it will able to collect
the rest of the TCCs applicable to its outstanding claims. The carrying amounts are already net of
claims disallowed by the BIR amounting to P=2.06 million, nil and P=1.34 million in 2011, 2010 and
2009, respectively (see Note 22).
Refundable deposits pertain to the security deposits made by the Parent Company and some of its
subsidiaries in relation to rental lease agreements for the office spaces in the Philippines, Hong
Kong, United Kingdom, Canada and Italy.
15. Beneficiaries and Other Payables
This account consists of:
2011 2010
Beneficiaries P=155,140,304 P=144,960,550
Agents, couriers and trading clients 65,550,310 44,773,236
Accrued expenses 14,801,171 2,701,805
Payable to SSS, Philhealth and HDMF 1,636,232 620,661
Withholding tax payable 1,543,424 2,045,708
Payable to suppliers 1,391,836 2,958,634
Output VAT 17,875 −
Due to related parties (Note 24) – 1,431,156
Others – 5,165
P=240,081,152 P=199,496,915
Payables to beneficiaries, agents, couriers and trading clients are noninterest-bearing and are
normally settled within 1 to 30 days.
Accrued expenses include the Group’s accrual for various operating expenses such as vacation and
sick leave benefits, courier charges, training and development, professional fees and utilities.
*SGVMC116502*

16. Interest-Bearing Loans
- 41 -
This account pertains to the Parent Company’s unsecured, short-term interest-bearing pesodenominated
bank loans.
As of December 31, 2011 and 2010, the outstanding loans payable of the Parent Company
amounted to P=666.00 million and P=877.00 million, respectively.
In 2011, 2010 and 2009, these loans bear annual interest rates ranging from 5.00% to 7.00%,
5.50% to 6.00%and 7.00% to 8.00%, respectively. In 2011, 2010 and 2009, the Parent Company
recognized interest expense of P=38.32 million, P=29.21 million and P=48.68 million, respectively.
The Parent Company has unused credit facilities with various banks aggregating to P=1.48 billion
and P=1.02 billion as of December 31, 2011 and 2010, respectively.
17. Equity
Capital Stock
The Parent Company’s capital stock consists of:
2011 2010 2009
Number of
Shares Amount
Number of
Shares Amount
Number of
Shares Amount
Common Stock
Authorized - P=1 par value
per share 1,000,000,000 P=1,000,000,000 1,000,000,000 P=1,000,000,000 1,000,000,000 P=1,000,000,000
Issued:
Balance at beginning
of the year 562,417,000 P=562,417,000 562,417,000 P=562,417,000 562,417,000 P=562,417,000
Stock dividends 55,308,800 55,308,800 – – – –
Balance at end of the year 617,725,800 617,725,800 562,417,000 562,417,000 562,417,000 562,417,000
Treasury stock:
Balance at beginning
of the year (9,329,000) (40,115,150) (9,329,000) (40,115,150) (10,006,200) (40,792,350)
Acquisitions (5,544,000) (12,872,058) – – (130,900) (130,900)
Reissaunce – – – – 808,100 808,100
Balance at end of the year (14,873,000) (52,987,208) (9,329,000) (40,115,150) (9,329,000) (40,115,150)
Issued and outstanding 602,852,800 P=564,738,592 553,088,000 P=522,301,850 553,088,000 P=522,301,850
On September 13, 2007, the SEC approved the registration of 140,604,000 common shares with
offer price of P=4.68 and 454,950,000 outstanding shares with par value of P=1.00. There are 17
registered common stockholders as of December 31, 2011 and 13 registered common stockholders
as of December 31, 2010 and 2009. Shares lodged with the Philippine Central Depository are
registered under the name of PCD Nominee Corporation and as such are treated as being held by
only one shareholder.
Capital Paid-in Excess of Par Value
The Parent Company’s capital paid-in excess of par value is composed of excess of proceeds on
issuance of the Parent Company’s shares amounting to P=429.51 million and excess of acquisition
costs over the carrying value of the noncontrolling interests acquired in 2011 amounting to
P=38.28 million (see Note 1).
*SGVMC116502*

- 42 -
Dividends
On March 23, 2009, the BOD of the Parent Company declared cash dividends amounting to
P=26.01 million or P=0.0471 per share, payable to shareholders-of-record as of April 7, 2009. The
declaration was subsequently ratified and confirmed by the Parent Company’ shareholders during
their annual meeting held on July 17, 2009. The payment of dividends was made on May 6, 2009.
On March 19, 2010, the BOD of the Parent Company declared cash dividends amounting to
P=26.60 million or P=0.0481 per share, payable to shareholders-of-record as of April 8, 2010. The
declaration was subsequently ratified and confirmed by the Parent Company’ shareholders during
their annual meeting held on July 23, 2010. The payment was made on May 5, 2010.
On June 17, 2011, the BOD of the Parent Company authorized the declaration of stock dividends
equivalent to 10% of outstanding shares of 553,088,000 in favor of its stockholders-of-record as of
August 15, 2011. The declaration was subsequently ratified and confirmed by the Parent
Company’s stockholders during their annual meeting held on July 29, 2011.
Accumulated net earnings of the subsidiaries amounting to P=200.65 million and P=121.85 million
as of December 31, 2011 and 2010, respectively, are not available for dividend declaration. This
accumulated equity in net earnings becomes available for dividend upon receipt of cash dividends
from the investees by the Parent Company.
Treasury Stock
On August 15, 2008, the Parent Company’s BOD approved the buy-back program to acquire up to
ten million (10,000,000) of its shares, representing approximately 1.87% of the Parent Company’s
total outstanding common shares, from the market. The Parent Company purchased 9,329,000
shares (P=40.11 million) in 2008 under the buy-back program.
In 2009 and 2008, the Parent Company purchased 130,900 shares (P=0.13 million) and
548,500 shares (P=0.55 million), respectively, under the SSPP. The 808,100 shares (including
128,700 shares purchased in 2007) purchased under the SSPP, were subsequently transferred in
September 2009 to the retirement fund of the Parent Company (see Notes 18 and 19).
On September 16, 2011, the BOD of the Parent Company adopted a resolution authorizing the
buy-back of up to ten million (10,000,000) of its shares from the market. The Parent Company
purchased 4,873,000 shares (P=11.35 million) under this buy-back program.
In 2011, the Parent Company also purchased 671,000 shares (P=1.52 million) under the buy-back
program approved on August 15, 2008 as discussed above.
Capital Management
The Group’s capital is composed of its equity, which amounts to P=1.36 billion and P=1.27 billion as
of December 31, 2011 and 2010, respectively.
The Group’s capital management activities seek to ensure that it maintains a healthy capital ratio
in order to support its businesses and maximize shareholder’s value by optimizing the level and
mix of its capital resources. Decisions on the allocation of capital resources are being performed as
part of the strategic planning review.
The Group manages its capital structure and makes adjustments to it, in light of changes in
economic conditions. To maintain or adjust the capital structure, the Group may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. No changes
were made in the objectives, policies or processes during the years ended December 31, 2011 and
2010.
*SGVMC116502*

- 43 -
The Group’s objective is to ensure that there are no known events that may trigger direct or
contingent financial obligation that is material to the Company, including default or acceleration
of an obligation.
The Group is not subject to externally imposed capital requirements.
18. Retirement Plan
The Parent Company has a noncontributory defined benefit retirement plan covering substantially
all of its regular employees. Under this retirement plan, all qualified employees are entitled to
cash benefits after satisfying age and service requirements.
Provisions for pension obligations are established for benefits payable in the form of retirement
pensions. Benefits are dependent on years of service and the respective employee’s latest monthly
salary.
The Parent Company determined its transitional liability for defined benefit retirement plan merely
as the present value of the obligation since the Parent Company had no plan assets at the date of
the adoption. Transitional liability is amortized prospectively over five (5) years starting on
January 1, 2005.
The latest actuarial valuation report on the retirement plan is dated December 31, 2011.
The principal actuarial assumptions used in determining the retirement liability of the Parent
Company as of January 1, 2011 and 2010 follow:
2011 2010
Discount rate 9.69% 11.25%
Future salary increases 8.00% 9.00%
Expected return on plan assets 6.00% 6.00%
Average remaining working life (in years) 32.1 31.8
The discount rates used to arrive at the present value of the obligation as of December 31, 2011
and 2010 are 6.70% and 9.69%, respectively.
The amounts recognized in the consolidated balance sheets follow:
2011 2010
Present value of obligation P=22,524,680 P=21,847,360
Fair value of plan assets 21,816,324 15,196,930
Deficit 708,356 6,650,430
Unrecognized actuarial loss (1,076,750) (5,872,169)
Retirement (asset) liability (P=368,394) P=778,261
*SGVMC116502*

- 44 -
The movements in the fair value of plan assets in 2011 and 2010 are as follows:
2011 2010
Balance at beginning of year P=15,196,930 P=12,421,022
Contributions 6,895,233 5,229,490
Expected return on plan assets 1,118,673 738,073
Actuarial loss (1,394,512) (2,643,029)
Benefits paid from plan assets – (548,626)
Balance at end of year P=21,816,324 P=15,196,930
The actual return on the plan assets of the Parent Company in 2011 and 2010 amounted to a loss
of P=0.28 million and P=1.90 million, respectively.
The Parent Company expects to contribute P=6.53 million to its retirement fund in 2012.
The movements in the present value of obligation follow:
2011 2010
Balance at beginning of year P=21,847,360 P=10,080,516
Current service cost 4,618,548 2,143,246
Interest cost 2,117,009 1,134,058
Benefits paid from plan assets – (548,626)
Actuarial (gain) loss (6,058,237) 9,038,166
Balance at end of year P=22,524,680 P=21,847,360
The amounts of retirement expense included in ‘Salaries, wages and employee benefits’ in the
consolidated statements of income follow:
2011 2010 2009
Current service cost P=4,618,548 P=2,143,246 P=1,819,273
Interest cost 2,117,009 1,134,058 999,326
Expected return on plan assets (1,118,673) (738,073) –
Actuarial (gain) loss recognized 131,694 (163,104) (53,418)
Amortization of transitional liability – – 252,228
P=5,748,578 P=2,376,127 P=3,017,409
The movements in the retirement (asset) liability recognized in the balance sheets are as follows:
2011 2010
Balance at beginning of year P=778,261 P=3,631,624
Retirement expense 5,748,578 2,376,127
Contributions (6,895,233) (5,229,490)
Balance at end of year (P=368,394) P=778,261
Movements in the unrecognized actuarial (gains) losses are as follows:
2011 2010
Balance at beginning of year P=5,872,169 (P=5,972,130)
Actuarial loss (gain) during the year (4,663,725) 11,681,195
Actuarial (loss) gain recognized (131,694) 163,104
Balance at end of year P=1,076,750 P=5,872,169
*SGVMC116502*

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

- 46 -
As approved by the Parent Company’s BOD, the fair value of the shares issued under the SSPP
was measured at the grant date using the price-earnings multiple model taking into account the
terms and conditions upon which the shares were granted. The fair value at grant date was
P=1.33 per share. This transaction also resulted in an increase in equity by P=1.53 million,
P=2.16 million and P=1.00 million in 2009, 2008 and 2007, respectively.
On September 19, 2009, which is the end of the lock up period, the 808,100 shares bought back at
cost was transferred to the Parent Company’s retirement fund upon reimbursement of the
P=0.81 million paid by the Parent Company for those shares.
The expense arising from the share-based payment plan is recognized over the two-year lock-up
period. The expense recognized under ‘Salaries, wages and employee benefits’ in the statements
of income amounted to P=1.53 million in 2009.
20. Operating Lease Commitments
The Parent Company has entered into the following lease agreements for its office spaces:
(a) On September 30, 2008, a lease agreement with Sta. Elena Divisoria Condo was made for a
period of 60 months commencing on October 1, 2008 to September 30, 2013 with a 10.00%
escalation rate effective on the second year up to the fifth year of the lease term. The contract
was cancelled in May 2009.
(b) A lease agreement with Wynsum Realty was entered into for a period of 24 months
commencing on September 1, 2008 to August 31, 2010 with a 5.00% escalation on the
monthly rental on the second year of the lease term. The contract was renewed for another
period of 2 years from September 1, 2010 to August 31, 2012 with the same terms.
(c) On February 7, 2007, a lease agreement with Oakridge Properties (Unit 2503) was made for a
period of 36 months commencing on February 1, 2007 to January 31, 2010 with a 10.00%
escalation on the monthly rental payable effective on the 13th and 25th month of the lease
term. The contract was renewed for another period of 2 years from February 1, 2010 to
January 31, 2012 with the same terms.
(d) A lease agreement with Oakridge Properties (Unit 2603) was entered into for a period of 12
months, which commenced on December 1, 2008 and expired on November 30, 2009. The
contract was renewed for a period of 2 years commencing on December 1, 2009 to
November 30, 2011 with a 10.00% escalation on the monthly rental on the 13th month of the
lease term. The contract was renewed for another period of 2 years from December 1, 2011 to
November 30, 2013 with the same terms.
(e) On January 6, 2009, a lease agreement with Oakridge Properties (Unit 2703) was entered into
for a period of 24 months commencing February 1, 2009 to January 31, 2011 with a 10.00%
escalation rate on the aggregate monthly rental effective on the 13th month of the lease term.
The contract was renewed for a period of 2 years from February 1, 2011 to January 31, 2013
with the same terms.
*SGVMC116502*

- 47 -
(f) On July 1, 2011, the Parent Company entered into a sublease agreement with Surewell
Equities Pte Ltd., one of the stockholders of the Parent Company, for the use of the latter’s
office space in Singapore for an initial term of two (2) years.
The subsidiaries have their respective operating lease agreements for their office spaces. The
lease contracts are for periods ranging from 1 to 10 years and may be renewed under the terms and
conditions mutually agreed upon by the subsidiaries and the lessors.
Rent expense of the Group amounted to P=57.43 million, P=50.38 million, and P=39.33 million in
2011, 2010 and 2009, respectively. P=3.92 million and P=4.02 million of the total rent expense
pertain to rent expense of the discontinued operations of Italy for the years ended
December 31, 2011 and 2010, respectively.
Future minimum rentals payable under non-cancelable operating leases are as follows:
2011 2010
Within one year P=43,590,836 P=51,662,348
After one year but not more than five years 53,212,917 71,152,989
P=96,803,753 P=122,815,337
In 2007, WEPL subleased its office space in Liverpool for a period of 20 months commencing on
August 2007 to April 2009.
21. Marketing Expenses
This account consists of:
2011 2010 2009
Marketing and promotions P=27,746,400 P=34,637,750 P=22,120,718
Advertising and publicity 9,617,140 8,883,266 10,856,700
P=37,363,540 P=43,521,016 P=32,977,418
Expenses amounting to P=1.02 million and P=0.93 million pertain to the marketing expenses of the
discontinued operations of Italy for the years ended December 31, 2011 and 2010, respectively
(see Note 28).
22. Other Operating Expenses
This account consists of:
2011 2010 2009
Taxes and licenses P=9,020,616 P=7,910,719 P=4,531,430
Repairs and maintenance 4,770,543 4,902,356 4,634,302
Association dues 3,230,078 1,927,949 2,066,643
Business development 2,974,651 2,679,500 943,210
Fines and penalty 2,992,353 − −
Disallowance of input VAT by BIR 2,058,616 – 1,338,804
Insurance 1,974,703 1,835,663 1,726,711
Donations and contributions – 1,155,280 1,209,115
Other charges − − 4,982,042
Miscellaneous 1,213,551 652,704 1,730,305
P=28,235,111 P=21,064,171 P=23,162,562
*SGVMC116502*

- 48 -
‘Business development’ pertains to various expenses incurred for development of potential foreign
offices and other related expenses.
‘Miscellaneous’ includes expenses for recruitment, Christmas party expenses, and Christmas
giveaways.
Other charges of the Group in 2009 pertain mainly to goods and services tax (GST) written off.
23. Realized Foreign Exchange Gains - Net and Other Income
‘Realized foreign exchange gains - net’ represents currency exchange income (net of losses)
arising primarily from trading third currencies to Philippine pesos. These third currencies are
sourced from the remittance transactions.
‘Other income’ consists of:
2011 2010 2009
GST refund P=21,668,641 P=– P=–
Unrealized foreign exchange gain - net 1,205,505 1,769,202 5,172,171
Rebates 2,881,469 6,728,713 14,608,204
Others 4,060,301 6,081,539 12,488,020
P=29,815,916 P=14,579,454 P=32,268,395
GST refund pertains to refund of GST previously paid by IRCL and WEPL to the government of
Canada and Australia, respectively. Both entities are exempt from paying GST.
Interest income pertains to interest earned from deposits, short-term placements with banks and
financial assets at FVPL.
Rebates pertain to refund of bank service charges and foreign exchange special rates relating to the
remittance transactions of WEPL.
‘Others’ pertains to commission from processing of remittance from one foreign office to another.
In 2009, this also includes WEPL’s income from sublease of office space (see Note 20).
24. Related Party Transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
*SGVMC116502*

- 49 -
In the ordinary course of business, the Group transacts with its related parties. Under the Group’s
existing policies, these transactions are made substantially on the same terms and conditions as
transactions with other individuals and businesses of comparable risks. The Group engages in
transactions with related parties consisting primarily of the following:
(a) Delivery fees earned from clients of associates are as follows:
2011 2010 2009
HKHCL P=46,127,251 P=33,202,567 P=25,364,567
ISPL 24,463,777 25,080,948 27,016,303
P=70,591,028 P=58,283,515 P=52,380,870
(b) The Parent Company leases office spaces from Oakridge Properties (see Note 20). Rent
expense amounted to P=9.96 million, P=9.25 million and P=8.17 million in 2011, 2010 and 2009,
respectively. Oakridge Properties is owned by JTKC, one of the stockholders of the Parent
Company.
(c) The Parent Company entered into a sublease agreement with Surewell Equities Pte Ltd., one
of the stockholders of the Parent Company (see Note 20). Rent expense amounted to
P=0.90 million in 2011.
(d) The Parent Company’s retirement fund is maintained with Sterling Bank of Asia (SBA), an
affiliate due to common stockholders, as trustee (see Note 18). The Parent Company also has
deposits amounting to P=118.62 million and P=129.71 million with SBA as of
December 31, 2011 and 2010, respectively. These deposits earned P=0.43 million,
P=1.12 million and P=1.16 million interest income in 2011, 2010 and 2009, respectively.
In addition to the related information disclosed elsewhere in the consolidated financial statements,
the following are the yearend balances in respect of transactions with related parties which were
carried in terms that prevail in arm’s length transactions during the year:
2011 2010
Due from related parties (Note 9):
Associates
ISPL P=16,034,603 P=16,104,921
HKHCL 8,986,123 10,888,056
Due to related parties (Note 15):
P=25,020,726 P=26,992,977
Directors P= − P=1,431,156
Advances to associates pertain to unpaid delivery fees. These are non-interest bearing and are due
on demand.
Advances to directors are non-interest bearing and are due on demand.
As of December 31, 2011 and 2010, no provision for credit losses has been recognized for the
amounts due from related parties.
*SGVMC116502*

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

- 8 -
Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of
the property and equipment as follows:
Office and communication equipment 3 years
Transportation and delivery equipment 3 to 5 years
Furniture and fixtures 3 to 5 years
Leasehold improvements 5 years or the term of the lease,
whichever is shorter
The carrying values of property and equipment are reviewed for impairment when events or
changes in circumstances indicate the carrying value may not be recoverable. If any such
indication exists and where the carrying values exceed the estimated recoverable amount, the asset
or cash-generating units (CGU) are written down to their recoverable amount (see policy on
Impairment of Nonfinancial Assets).
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of
the asset) is included in the parent company statement of income in the year the asset is
derecognized.
The asset’s residual values, useful lives and methods of depreciation and amortization are
reviewed, and adjusted if appropriate, at each financial year-end to ensure that these are consistent
with the expected pattern of economic benefits from the items of property and equipment.
Software costs
Software costs are carried at cost less accumulated amortization and any impairment in value. The
cost of the asset is the amount of cash or cash equivalents paid or the fair value of the other
considerations given up to acquire the asset at the time of its acquisition or production. Software
costs are amortized on a straight-line basis over its estimated useful life of three (3) years.
The asset’s amortization period and amortization method are reviewed at least at each balance
sheet date. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset is accounted for by changing the amortization period or
method, as appropriate, and treated as changes in accounting estimates.
Impairment of Nonfinancial assets
Investments in subsidiaries and associates
The Parent Company assesses at each balance sheet date whether there is any indication that its
investments in subsidiaries and associates may be impaired. If any indication exists, the Parent
Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher
of an asset’s or CGU’s fair value less cost to sell and its value in use. Where the carrying amount
of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.
Property and equipment and software costs
At each balance sheet date, the Parent Company assesses whether there is any indication that its
property and equipment and software costs may be impaired. When an indicator of impairment
exists or when an annual impairment testing for an asset is required, the Parent Company makes a
formal estimate of recoverable amount. Recoverable amount is the higher of an asset’s (or
CGU’s) fair value less costs to sell and its value in use and is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other
*SGVMC116501*

- 9 -
assets or groups of assets, in which case the recoverable amount is assessed as part of the CGU to
which it belongs. Where the carrying amount of an asset (or CGU) exceeds its recoverable
amount, the asset (or CGU) is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset (or CGU). In determining fair value less cost to sell, recent
market transactions are taken into account, if available. If no such transactions can be identified,
an appropriate valuation model is used. These calculations are corroborated by available fair
value indicators.
An impairment loss is charged to operations in the year in which it arises, unless the asset is
carried at a revalued amount, in which case the impairment loss is charged to the revaluation
increment of the said asset.
An assessment is made at each balance sheet date as to whether there is any indication that
previously recognized impairment losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A previously recognized impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable
amount since the last impairment loss was recognized. If that is the case, the carrying amount of
the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying
amount that would have been determined, net of depreciation and amortization, had no impairment
loss been recognized for the asset in prior years. Such reversal is recognized in the parent
company statement of income unless the asset is carried at a revalued amount, in which case the
reversal is treated as a revaluation increase. After such a reversal, the depreciation and
amortization expense is adjusted in future years to allocate the asset’s revised carrying amount,
less any residual value, on a systematic basis over its remaining life.
Input Value Added Tax (VAT)
Input VAT represents VAT imposed on the Parent Company by its suppliers for the acquisition of
goods and services as required by Philippine taxation laws and regulations. This will be claimed
as tax credits. Input VAT is stated at its estimated net realizable values.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Parent Company and the revenue can be reliably measured. The Parent Company assesses its
revenue arrangements against specific criteria in order to determine if it is acting as principal or
agent. The following specific recognition criteria must also be met before revenue is recognized:
Delivery fees
Revenue from delivery fees is recognized as the service is rendered net of amounts payable to
principals (i.e., partner remittance companies) for fees billed on their behalf.
Service revenue
Service revenue is recognized when the service is rendered.
Interest income
Interest on financial instruments measured at amortized cost is recognized based on the EIR
method.
The EIR method is a method of calculating the amortized cost of a financial asset or a financial
liability and allocating the interest income or interest expense over the relevant period. The EIR is
the rate that exactly discounts estimated future cash payments or receipts throughout the expected
*SGVMC116501*

- 10 -
life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of
the financial asset or financial liability. When calculating the EIR, the Parent Company estimates
cash flows from the financial instrument (for example, prepayment options) but does not consider
future credit losses. The calculation includes all fees and points paid or received between parties
to the contract that are an integral part of the EIR, transaction costs and all other premiums or
discounts.
Once a financial asset or a group of financial assets has been written down as a result of an
impairment loss, interest income is recognized thereafter using the rate of interest used to discount
the future cash flows for the purpose of measuring the impairment loss.
Dividends
Dividend income is recognized when the Parent Company’s right to receive payment is
established.
Rebates
Rebates pertaining to refunds of bank service charges are recognized upon collection.
Costs and Expenses
Costs and expenses encompass losses as well as those expenses that arise in the course of the
ordinary business activities of the Parent Company. The following specific recognition criteria
must also be met before costs and expenses are recognized:
Cost of services
This includes all expenses associated with the specific delivery fees. Such costs are recognized
when the related delivery fees have been recognized.
Operating expenses
Operating expenses constitute costs incurred related to advertising and administering the business
and are recognized when incurred.
Taxes and licenses
This includes all other taxes, local and national, including real estate taxes, licenses and permit
fees included under ‘Other operating expenses’ in the parent company statement of income.
Retirement Benefits
The Parent Company has a noncontributory defined benefit retirement plan administered by a
trustee, covering its permanent employees.
The retirement cost of the Parent Company is determined using the projected unit credit method.
Under this method, the current service cost is the present value of retirement benefits payable in
the future with respect to services rendered in the current period.
The liability recognized in the parent company balance sheet in respect of defined benefit
retirement plan is the present value of the defined benefit obligation at the balance sheet date less
the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses
and past service costs. The defined benefit obligation is calculated annually by an independent
actuary using the projected unit credit method. The present value of the defined benefit obligation
is determined by discounting the estimated future cash outflows using interest rates on Philippine
government bonds that have terms to maturity approximating the terms of the related retirement
liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are credited to or charged against income when the net cumulative unrecognized
*SGVMC116501*

- 11 -
actuarial gains and losses at the end of the previous period exceeded 10.00% of the higher of the
defined benefit obligation and the fair value of plan assets at that date. These gains or losses are
recognized over the expected average remaining working lives of the employees participating in
the plan.
Past-service costs, if any, are recognized immediately in income, unless the changes to the
retirement plan are conditional on the employees remaining in service for a specified period of
time (the vesting period). In this case, the past-service costs are amortized on a straight-line basis
over the vesting period.
The defined benefit asset or liability comprises the present value of the defined benefit obligation
less past service costs not yet recognized and less the fair value of plan assets out of which the
obligations are to be settled directly. The value of any asset is restricted to the sum of any past
service cost not yet recognized and the present value of any economic benefits available in the
form of refunds from the plan or reductions in the future contributions to the plan.
Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of
the arrangement at the inception date of whether the fulfillment of the arrangement is dependent
on the use of a specific asset or assets or the arrangement conveys a right to use the asset. A
reassessment is made after inception of the lease only if one of the following applies:
(a) there is a change in contractual terms, other than a renewal or extension of the arrangement;
(b) a renewal option is exercised or extension granted, unless the term of the renewal or extension
was initially included in the lease term;
(c) there is a change in the determination of whether fulfillment is dependent on a specified asset;
or
(d) there is a substantial change to the asset.
When a reassessment is made, lease accounting shall commence or cease from the date when the
change in circumstances gave rise to the reassessment for scenarios (a), (c), or (d) and at the date
of renewal or extension for scenario (b).
Parent Company as a lessee
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as an operating lease. Operating lease payments are recognized as an expense in the
parent company statement of income on a straight-line basis over the lease term.
Share-based Payment
The Parent Company granted a stock purchase program to certain officers, employees and
individuals (see Note 17) that is subject to a lock-up or vesting period of two (2) years and which
ended on September 19, 2009. The Parent Company accounted for the share-based payment as an
equity-settled transaction. The cost of equity-settled transactions is measured by reference to the
fair value of the equity instrument at the date at which they are granted. The expense is
recognized as part of ‘Salaries, wages and employee benefits’ in the statement of income over the
lock-up period of two (2) years. The cumulative expense recognized for equity-settled
transactions at each balance sheet date until the vesting date reflects the extent to which the
vesting period has expired and the Parent Company’s best estimate of the number of equity
instruments that will ultimately vest. The expense in the statement of income for the period
represents the movement in cumulative expense recognized at the beginning and end of the period.
*SGVMC116501*

- 12 -
Income Taxes
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted at the balance sheet
date.
Deferred tax
Deferred tax is provided, using the balance sheet liability method, on all temporary differences at
the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences, including asset
revaluations. Deferred tax assets are recognized for all deductible temporary differences,
carryforward of unused tax credits from excess minimum corporate income tax (MCIT) over the
regular corporate income tax (RCIT), if any, and unused net operating loss carryover (NOLCO), if
any, to the extent that it is probable that taxable income will be available against which the
deductible temporary differences and carryforward of unused tax credits from excess MCIT over
RCIT and unused NOLCO can be utilized.
Deferred tax liabilities are not provided on non-taxable temporary differences associated with
investments in associates where the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the foreseeable
future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable income will be available to allow all
or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at
each balance sheet date and are recognized to the extent that it has become probable that future
taxable income will allow the deferred tax assets to be recovered.
Deferred tax assets and deferred tax liabilities are measured at the tax rates that are applicable to
the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantially enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Current tax and deferred tax relating to items recognized directly in equity are also recognized in
equity and not in the consolidated statement of income.
Borrowing Costs
Borrowing costs are recognized as an expense when incurred.
Equity
Capital stock is measured at par value for all shares issued and outstanding. When the shares are
sold at a premium, the difference between the proceeds and the par value is credited to ‘Capital
paid-in excess of par value’ account. Direct costs incurred related to issuance of equity, such as
underwriting, accounting and legal fees, printing costs and taxes are chargeable to ‘Capital paid-in
excess of par value’. If the ‘Capital paid-in excess of par value’ is not sufficient, the excess is
charged to profit or loss.
*SGVMC116501*

- 13 -
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction. The excess of acquisition cost over the carrying value of the noncontrolling
interest (formerly known as minority interest) is charged against the ‘Capital paid-in excess of par
value’.
When the Parent Company issues more than one class of stock, a separate account is maintained
for each class of stock and the number of shares issued.
‘Retained earnings’ represents accumulated earnings (losses) of the Parent Company less
dividends declared.
Own equity instruments which are reacquired (treasury shares) are recognized at cost and
deducted from equity as ‘Treasury stock’. No gain or loss is recognized in the parent company
statement of income on the purchase, sale, issue or cancellation of the Parent Company’s own
equity instruments. Any difference between the carrying amount and the consideration is
recognized in ‘Capital paid-in excess of par value’.
Dividends
Cash dividends on common shares are recognized as a liability and deducted from equity when
declared and approved by the Board of Directors (BOD) of the Parent Company. Stock dividends
are deducted from equity when declared and approved by the BOD and stockholders of the Parent
Company.
Related party relationships and transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
Provisions
Provisions are recognized when the Parent Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of assets embodying
economic benefits will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation. Where the Parent Company expects a provision to be reimbursed,
the reimbursement is recognized as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the parent company statement of
income, net of any reimbursement.
Contingencies
Contingent liabilities are not recognized in the parent company financial statements. These are
disclosed unless the possibility of an outflow of resources embodying economic benefits is
remote. A contingent asset is not recognized in the parent company financial statements but
disclosed when an inflow of economic benefits is probable.
Events After the Reporting Period
Post year-end events that provide additional information about the Parent Company’s financial
position at the balance sheet date (adjusting events) are reflected in the parent company financial
statements. Post year-end events that are not adjusting events are disclosed in the notes to the
parent company financial statements when material.
*SGVMC116501*

- 14 -
Standards Issued but not yet Effective
The Parent Company will adopt the following standards and interpretations enumerated below
when these become effective. Except as otherwise indicated, the Parent Company does not expect
the adoption of these new and amended PFRS and Philippine Interpretations to have significant
impact on its financial position and performance.
Effective in 2012
PFRS 7 Amendments, Financial Instruments: Disclosures - Disclosures - Transfers of Financial
Assets
The amendments to PFRS 7 are effective for annual periods beginning on or after July 1, 2011.
The amendments will allow users of financial statements to improve their understanding of
transfer transactions of financial assets (for example, securitizations), including understanding the
possible effects of any risks that may remain with the entity that transferred the assets. The
amendments also require additional disclosures if a disproportionate amount of transfer
transactions are undertaken around the end of a reporting period.
PAS 12 Amendment, Income Taxes - Deferred Tax: Recovery of Underlying Assets
The amendment to PAS 12 is effective for annual periods beginning on or after January 1, 2012.
It provides a practical solution to the problem of assessing whether recovery of an asset will be
through use or sale. It introduces a presumption that recovery of the carrying amount of an asset
will normally be through sale.
Effective in 2013
PAS 1, Financial Statement Presentation - Presentation of Items of Other Comprehensive Income
(OCI)
The amendment effective for annual periods beginning or after July 1, 2012, changes the grouping
of items presented in OCI. Items that could be reclassified (or “recycled”) to profit or loss at a
future point in time would be presented separately from items that will never be reclassified.
PAS 27 Revised, Separate Financial Statements
The revised PAS 27 is effective for annual periods beginning on or after January 1, 2013. It
establishes that as a consequence of the new PFRS 10, Consolidated Financial Statement and
PFRS 12, Disclosure of Interests in Other Entities, what remains of PAS 27 is limited to
accounting for subsidiaries, jointly controlled entities, and associates in separate financial
statements.
PFRS 7 Revised, Financial instruments: Disclosures - Offsetting Financial Assets and Financial
Liabilities
The revised PFRS 7 effective for annual periods beginning on or after January 1, 2013, requires an
entity to disclose information about rights of set-off and related arrangements (such as collateral
agreements). The new disclosures are required for all recognized financial instruments that are set
off in accordance with PAS 32. These disclosures also apply to recognized financial instruments
that are subject to an enforceable master netting arrangement or ‘similar agreement’, irrespective
of whether they are set-off in accordance with PAS 32.
PFRS 10, Consolidated Financial Statements
The standard, effective for annual periods beginning on or after January 1, 2013, establishes
principles for the presentation and preparation of consolidated financial statements when an entity
controls one or more other entities. The Parent Company will assess the impact of the amendment
on its financial position and performance when they become effective.
*SGVMC116501*

- 15 -
PFRS 11, Joint Arrangements
PFRS 11 provides for a more realistic reflection of joint arrangements by focusing on the rights
and obligations of the arrangement, rather than its legal form. The standard addresses
inconsistencies in the reporting of joint arrangements by requiring a single method to account for
interests in jointly controlled entities. The standard is effective for annual periods beginning on or
after January 1, 2013.
PFRS 12, Disclosure of Interests in Other Entities
PFRS 12 is a new and comprehensive standard on disclosure requirements for all forms of
interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated
structured entities. The standard is effective for annual periods beginning on or after January 1,
2013. The Parent Company will assess the impact of the amendment on its financial position and
performance when they become effective.
PFRS 13, Fair Value Measurement
This standard represents the completion of the joint project to establish a single source for the
requirements on how to measure fair value under PFRS. This standard does not change when an
entity is required to use fair value, but rather, describes how to measure fair value under PFRS,
when fair value is required or permitted to be used. This standard is effective for annual periods
beginning on or after January 1, 2013. The Parent Company will assess the impact of the
amendment on its financial position and performance when they become effective.
PAS 19 Amendments, Employee Benefits - Defined Benefit Plans
The amendments focus on the following key areas: the elimination of the option to defer the
recognition of gains and losses resulting from defined benefit plans (the corridor approach); the
elimination of options for the presentation of gains and losses relating to those plans; and the
improvement of disclosure requirements that will better show the characteristics of defined benefit
plans and the risks arising from those plans. The amendments to the recognition, presentation and
disclosure requirements will ensure that the financial statements provide investors and other users
with a clear picture of an entity’s commitments resulting from defined benefit plans. The
amendments to PAS 19 are effective for annual periods beginning on or after January 1, 2013.
The Parent Company will assess the impact of the amendment when this becomes effective.
Effective 2014
PAS 32 Amendment, Financial Instruments: Presentation - Offsetting Financial Assets and
Financial Liabilities
The amendment to PAS 32 is effective for annual periods beginning on or after January 1, 2014.
This clarifies the meaning of “currently has a legally enforceable right to set-off” and the
application of the PAS 32 offsetting criteria to settlement systems (such as central clearing house
systems) which apply gross settlement mechanisms that are not simultaneous.
Effective 2015
PFRS 9, Financial Instruments: Classification and Measurement
The standard is effective for annual periods beginning on or after January 1, 2015. It reflects the
first phase on the replacement of PAS 39, Financial Instruments: Recognition and Measurement
and applies to classification and measurement of financial assets and financial liabilities as defined
in PAS 39. The Parent Company will assess the impact of the amendment on its financial position
and performance when they become effective.
Philippine Interpretation IFRIC 15, Agreement for Construction of Real Estate
This Interpretation, effective for annual periods beginning on or after January 1, 2015, covers
accounting for revenue and associated expenses by entities that undertake the construction of real
*SGVMC116501*

- 16 -
estate directly or through subcontractors. The Interpretation requires that revenue on construction
of real estate be recognized only upon completion, except when such contract qualifies as
construction contract to be accounted for under PAS 11, Construction Contracts, or involves
rendering of services in which case revenue is recognized based on stage of completion. Contracts
involving provision of services with the construction materials and where the risks and reward of
ownership are transferred to the buyer on a continuous basis will also be accounted for based on
stage of completion.
3. Significant Accounting Judgments and Estimates
The preparation of the parent company financial statements in compliance with PFRS requires the
Parent Company to make judgments and estimates that affect the reported amounts of assets,
liabilities, income and expenses and disclosure of contingent assets and contingent liabilities.
Future events may occur which will cause the assumptions used in arriving at the estimates to
change. The effects of any change in estimates are reflected in the parent company financial
statements as they become reasonably determinable.
Judgments and estimates are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Judgments
a. Functional Currency
PAS 21 requires management to use its judgment to determine the entity’s functional currency
such that it most faithfully represents the economic effects of the underlying transactions,
events and conditions that are relevant to the entity. In making this judgment, the Parent
Company considers the following:
• the currency that mainly influences sales prices for financial instruments and services (this
will often be the currency in which sales prices for its financial instruments and services
are denominated and settled);
• the currency in which funds from financing activities are generated; and
• the currency in which receipts from operating activities are usually retained.
The Parent Company determined its functional currency to be Philippine peso, being the
currency that mainly influences the Parent Company’s revenues and cost and expenses.
b. Operating leases
Parent Company as lessee
The Parent Company has entered into commercial property leases as a lessee for its office
premises. The Parent Company has determined that it has not acquired the significant risks
and rewards of ownership of the leased properties and so account for the contracts as operating
leases.
c. Fair value of financial instruments
The fair values of financial instruments that are not quoted in active markets are determined
using valuation techniques. The fair values of financial assets and financial liabilities of the
Parent Company are disclosed in Note 4.
*SGVMC116501*

- 17 -
d. Contingencies
The Parent Company is currently involved in various proceedings. The estimate of the
probable costs for the resolution of these claims has been developed in consultation with
outside counsel handling the defense in these matters and is based upon an analysis of
potential results. The Parent Company currently does not believe these proceedings will have
a material effect on the Parent Company’s financial position. It is possible, however, that
future results of operations could be materially affected by changes in the estimates or in the
effectiveness of the strategies relating to these proceedings (see Note 24).
e. Determination of whether the Parent Company is acting as a principal or an agent
The Parent Company assesses its revenue arrangements against the following criteria to
determine whether it is acting as a principal or an agent:
• whether the Parent Company has primary responsibility for providing the goods and
services;
• whether the Parent Company has inventory risk;
• whether the Parent Company has discretion in establishing prices; and
• whether the Parent Company bears the credit risk.
If the Parent Company has determined it is acting as a principal, revenue is recognized on a
gross basis with the amount remitted to the other party being accounted for as part of costs and
expenses.
If the Parent Company has determined it is acting as an agent, only the net amount retained is
recognized as revenue.
The Parent Company assessed its revenue arrangements and concluded that it is acting as
principal in some arrangements and as an agent in other arrangements.
Estimates
a. Credit losses on receivables
The Parent Company reviews its receivables at each balance sheet date to assess whether an
allowance for credit losses should be recorded in the parent company balance sheet. In
particular, judgment by management is required in the estimation of the amount and timing of
future cash flows when determining the level of allowance required. Such estimates are based
on assumptions about a number of factors such as length of the Parent Company’s relationship
with counterparties (e.g., agents and couriers), current credit status, average age of accounts,
collection and historical loss experience. Actual results may differ, resulting in future changes
to the allowance.
As of December 31, 2011, accounts receivable and other receivables are carried in the parent
company balance sheet at P=1.00 billion and P=0.14 billion, respectively. As of
December 31, 2010, accounts receivable and other receivables are carried in the balance sheet
at P=1.12 billion and P=0.14 billion, respectively. The Parent Company has assessed that there
is no need to recognize impairment losses on its receivables as of December 31, 2011 and
2010.
*SGVMC116501*

- 18 -
b. Impairment of nonfinancial assets
(i) Investments in subsidiaries and associates
The Parent Company assesses impairment on its investments in subsidiaries and associates
whenever events or changes in circumstances indicate that the carrying amount of the
assets may not be recoverable. Among others, the factors that the Parent Company
considers important, which could trigger an impairment review on its investments in
subsidiaries and associates, include the following:
• deteriorating or poor financial condition;
• recurring net losses; and
• significant changes with an adverse effect on the subsidiary/associate have taken place
during the period, or will take place in the near future, in the technological, market,
economic, or legal environment in which the subsidiary/associate operates.
(ii) Property and equipment and software costs
The Parent Company assesses impairment on property and equipment and software costs
whenever events or changes in circumstances indicate that the carrying amount of the
asset may not be recoverable. The factors that the Parent Company considers important,
which could trigger an impairment review, include the following:
• significant underperformance relative to expected historical or projected future
operating results;
• significant changes in the manner of use of the acquired assets or the strategy for
overall business; and
• significant negative industry or economic trends.
The Parent Company recognizes an impairment loss whenever the carrying amount of the
asset exceeds its recoverable amount. The recoverable amount is determined based on the
asset’s value in use computation, which considers the present value of estimated future cash
flows expected to be generated from the continued use of the asset.
As of December 31, 2011 and 2010, no impairment losses were recognized on the Parent
Company’s nonfinancial assets. The carrying values of the Parent Company’s nonfinancial
assets as of December 31 follow:
2011 2010
Investments in subsidiaries and associates (Note 10) P=295,334,077 P=245,149,252
Property and equipment - net (Note 11) 7,094,474 9,493,115
Software costs - net (Note 12) 1,396,241 1,868,072
c. Estimated useful lives of property and equipment and software costs
The Parent Company reviews the estimated useful lives of property and equipment and
software costs annually based on the expected asset utilization after considering the expected
future technological developments and market behavior. Significant changes in these estimates
resulting from changes in the factors aforementioned could possibly affect the future results of
operations. Any decrease in the estimated useful life of the property and equipment and
software costs would decrease their respective balances and increase the recorded depreciation
and amortization.
*SGVMC116501*

- 19 -
As of December 31, 2011 the carrying values of Property and equipment and Software costs
follow:
2011 2010
Property and equipment - net (Note 11) P=7,094,474 P=9,493,115
Software costs - net (Note 12) 1,396,241 1,868,072
In 2011, 2010 and 2009, the Parent Company recognized depreciation and amortization in the
statements of income amounting to P=6.54 million, P=8.06 million and P=8.61 million,
respectively.
d. Recognition of deferred tax assets
The Parent Company reviews the carrying amounts of deferred tax assets at each balance sheet
date and reduces it to the extent that it is no longer probable that sufficient taxable income will
be available to allow all or part of the deferred tax assets to be utilized. Significant judgment
is required to determine the amount of deferred tax assets that can be recognized, based upon
the likely timing and level of future taxable income together with future tax planning
strategies.
As of December 31, 2011 and 2010, the Parent Company did not recognize net deferred tax
assets on existing deductible temporary differences amounting to P=2.80 million and
P=2.85 million, respectively. Management believes that it is not highly probable that these
temporary differences will be realized in the future (see Note 23).
e. Present value of net retirement obligation
The cost of defined benefit retirement plan and other post-employment benefits are
determined using actuarial valuations. The actuarial valuation involves making assumptions
about discount rates, expected rates of return on assets, future salary increases, mortality rates
and future retirement increases. Due to the long-term nature of these benefits, such estimates
are subject to significant uncertainty.
The assumed discount rates were determined using the market yields on Philippine
government bonds with terms consistent with the expected employee benefit payout as of the
consolidated balance sheet date. Refer to Note 16 for the details of assumptions used in the
calculation. As of December 31, 2011 and 2010, the Parent Company recognized retirement
asset of P=0.37 million and retirement liability of P=0.78 million, respectively. In 2011, 2010
and 2009, the Parent Company recognized retirement expense amounting to P=5.75 million,
P=2.38 million and P=3.02 million, respectively (see Note 16).
f. Share-based payment transactions
The Parent Company determined the cost of its equity-settled share based program at grant
date using the price earnings multiple model taking into account the terms and conditions
upon which the shares were granted. At yearend, the Parent Company estimates the number
of equity instruments that will ultimately vest. The Parent Company recognized cost of
equity-settled share based payments amounting to P=1.53 million in 2009 (see Note 17). The
vesting period of the stock purchase program ended on September 19, 2009.
*SGVMC116501*

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

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

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

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

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

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

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

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

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

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

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

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

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

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

15. Equity
- 34 -
Capital Stock
The Parent Company’s capital stock consists of:
2011 2010 2009
Number of
Shares Amount
Number of
Shares Amount
Number of
Shares Amount
Common Stock
Authorized - P=1 par value
per share 1,000,000,000 P=1,000,000,000 1,000,000,000 P=1,000,000,000 1,000,000,000 P=1,000,000,000
Issued:
Balance at beginning
of the year 562,417,000 P=562,417,000 562,417,000 P=562,417,000 562,417,000 P=562,417,000
Stock dividends 55,308,800 55,308,800 – – – –
Balance at end of the year 617,725,800 617,725,800 562,417,000 562,417,000 562,417,000 562,417,000
Treasury stock:
Balance at beginning
of the year (9,329,000) (40,115,150) (9,329,000) (40,115,150) (10,006,200) (40,792,350)
Acquisitions (5,544,000) (12,872,058) – – (130,900) (130,900)
Reissaunce – – – – 808,100 808,100
Balance at end of the year (14,873,000) (52,987,208) (9,329,000) (40,115,150) (9,329,000) (40,115,150)
Issued and outstanding 602,852,800 P=564,738,592 553,088,000 P=522,301,850 553,088,000 P=522,301,850
On September 13, 2007, the SEC approved the registration of 140,604,000 common shares with
offer price of P=4.68 and 454,950,000 outstanding shares with par value of P=1.00. There are 17
registered common stockholders as of December 31, 2011 and 13 registered common stockholders
as of December 31, 2010 and 2009. Shares lodged with the Philippine Central Depository are
registered under the name of PCD Nominee Corporation and as such are treated as being held by
only one shareholder.
Dividends
On March 23, 2009, the BOD of the Parent Company declared cash dividends amounting to
P=26.01 million or P=0.0471 per share, payable to shareholders-of-record as of April 7, 2009.
The declaration was subsequently ratified and confirmed by the Parent Company’ shareholders
during their annual meeting held on July 17, 2009. The payment of dividends was made on
May 6, 2009.
On March 19, 2010, the BOD of the Parent Company declared cash dividends amounting to
P=26.60 million or P=0.0481 per share, payable to shareholders-of-record as of April 8, 2010.
The declaration was subsequently ratified and confirmed by the Parent Company’ shareholders
during their annual meeting held on July 23, 2010. The payment was made on May 5, 2010.
On June 17, 2011, the Board of Directors of the Parent Company authorized the declaration of
stock dividends equivalent to 10% of outstanding shares of 553,088,000 in favor of its
stockholders-of-record as of August 15, 2011. The declaration was subsequently ratified and
confirmed by the Parent Company’s stockholders during their annual meeting held on
July 29, 2011.
Treasury Stock
On August 15, 2008, the Parent Company’s BOD approved the buy-back program to acquire up to
ten million (10,000,000) of its shares, representing approximately 1.87% of the Parent Company’s
total outstanding common shares, from the market. The Parent Company purchased 9,329,000
shares (P=40.12 million) in 2008 under the buy-back program.
*SGVMC116501*

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

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

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

17. Special Stock Purchase Program (SSPP)
- 38 -
On July 20, 2007, the Parent Company’s BOD approved the proposal to set up an SSPP totaling
15,000,000 shares for the employees of the Parent Company who have been in the service for at
least one (1) calendar year as of June 30, 2007, as well as its BOD members, resource persons and
consultants (collectively referred to as “the Participants”). A Notice of Exemption under
Section 10.2 of the Securities Regulations Code had been approved by the SEC on
September 13, 2007. Notwithstanding the aforesaid confirmation by the SEC of the exempt
status of the SSPP shares, the SEC nonetheless required the Parent Company to include the SSPP
shares among the shares of the Parent Company which were registered with the SEC prior to the
conduct of its Initial Public Offering in October 2007. The registration of the Parent Company
shares, together with the SSPP shares, was rendered effective on October 5, 2007.
All 15,000,000 shares were exercised. The shares subject to the SSPP were sold at par value or
P=1.00 per share. Total shares amounting to P=11.74 million were paid in full, while the difference
totaling P=3.26 million were paid by way of salary loan. Shares acquired through SSPP are subject
to a lock-up period of 2 years from date of issue, which ended on September 19, 2009.
The sale is further subject to the condition that should the officer or employee resign from the
Parent Company prior to the expiration of the lock-up period, the shares purchased by such
resigning employee or officer shall be purchased at cost by the Parent Company as Treasury
stock. As of December 31, 2009, 24 employees resigned (9 in 2009, 13 in 2008 and 2 in 2007)
and their shares totaling 808,100 (130,900 in 2009, 548,500 in 2008 and 128,700 in 2007) were
bought back by the Parent Company.
As approved by the Parent Company’s BOD, the fair value of the shares issued under the SSPP
was measured at the grant date using the price-earnings multiple model taking into account the
terms and conditions upon which the shares were granted. The fair value at grant date was
P=1.33 per share. This transaction also resulted in an increase in equity by P=1.53 million,
P=2.16 million and P=1.00 million recognized as ‘Share-based payment’ under equity in 2009, 2008
and 2007, respectively.
On September 19, 2009, which is the end of the lock up period, the 808,100 shares bought back at
cost was transferred to the Parent Company’s retirement fund upon reimbursement of the
P=0.81 million paid by the Parent Company for those shares (see Note 16).
The expense arising from the share-based payment plan is recognized over the two-year lock-up
period. The expense recognized under ‘Salaries, wages and employee benefits’ in the parent
company statements of income amounted to P=1.53 million in 2009.
18. Operating Lease Commitments
The Parent Company has entered into the following lease agreements for its office spaces:
(a) On September 30, 2008, a lease agreement with Sta. Elena Divisoria Condo was made for a
period of 60 months commencing on October 1, 2008 to September 30, 2013 with a 10.00%
escalation rate effective on the second year up to the fifth year of the lease term. The contract
was cancelled in May 2009.
*SGVMC116501*

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

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

22. Related Party Transactions
- 41 -
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
In the ordinary course of business, the Parent Company transacts with its related parties. Under
the Parent Company’s existing policies, these transactions are made substantially on the same
terms and conditions as transactions with other individuals and businesses of comparable risks.
The Parent Company engages in transactions with related parties consisting primarily of the
following:
(a) Delivery fees earned from clients of subsidiaries and associates are as follows:
2011 2010 2009
IRCL P=55,556,118 P=55,227,017 P=51,071,109
HKHCL 46,127,251 33,202,567 25,364,567
IAPL and WEPL 28,136,596 26,166,135 30,787,242
ISPL 24,463,777 25,080,948 27,016,303
IGRL 17,147,494 21,562,260 22,736,884
LSML 7,562,975 10,342,216 9,633,356
INZL 4,032,091 3,498,875 2,697,639
IRCGmbH 1,242,098 3,899,549 4,368,628
P=184,268,400 P=178,979,567 P=173,675,728
(b) The Parent Company leases office spaces from Oakridge Properties (see Note 18). Rent
expense amounted to P=9.88 million, P=9.25 million and P=8.17 million in 2011, 2010, and 2009,
respectively. Oakridge Properties is owned by JTKC, one of the stockholders of the Parent
Company.
(c) The Parent Company entered into a sublease agreement with Surewell Equities Pte Ltd., one
of the stockholders of the Parent Company (see Note 18). Rent expense amounted to
P=0.90 million in 2011.
(d) The Parent Company’s retirement fund is maintained with Sterling Bank of Asia (SBA), an
affiliate due to common stockholders, as trustee (see Note 16). The Parent Company also has
deposits amounting to P=118.62 million and P=129.71 million with SBA as of
December 31, 2011 and 2010, respectively. These deposits earned P=0.43 million, P=1.12
million and P=1.16 million interest income in 2011, 2010, and 2009, respectively.
(e) In 2011, the Parent Company provides call center services to process the phone-in transactions
of IRCL, INZL, IGRL and WEPL. Service income earned amounted to P=6.17 million.
*SGVMC116501*

- 42 -
In addition to the related information disclosed elsewhere in the Parent Company’s financial
statements, the following are the yearend balances in respect of transactions with related parties
which were carried in terms that prevail in arm’s length transactions during the year:
2011 2010
Accounts receivable (Note 7):
Subsidiaries:
IRCL 42,142,000 28,873,378
WEPL 23,569,790 11,794,898
IGRL 19,114,840 –
LSML 8,434,669 8,750,196
INZL 5,149,801 7,113,107
IRCGmbH – 9,476,775
IAPL
Associates:
– 25,949
ISPL 66,321,905 38,681,856
HKHCL 29,463,514 35,543,489
P=194,196,519 P=140,259,648
Advances to related parties (Note 8):
Subsidiaries:
IRCGmbH P=62,811,308 P=54,579,655
IGRL 20,421,294 5,099,127
INZL 15,725,924 9,285,149
LSML 6,778,807 4,454,735
KKIJ 5,611,520 –
WEPL 604,175 94,113
IAPL 373,740 –
IRCL 150,199 71,646
PSAGL 33,166 –
Associates:
ISPL 16,034,604 16,104,921
HKHCL 8,715,507 8,078,542
P=137,260,244 P=97,767,888
Advances from related parties (Note 13):
Subsidiaries:
PSAGL P=75,534,429 P=70,214,989
IAPL 4,218,688 3,946,101
P=79,753,117 P=74,161,090
Accounts receivable pertains to advances made by the Parent Company to beneficiaries of
remittance transactions processed by the subsidiaries and associates.
Advances to subsidiaries include operational cash advances from the Parent Company. These are
non-interest bearing and are due on demand.
Advances to associates pertain to unpaid delivery fees. These are non-interest bearing and are due
on demand.
*SGVMC116501*

- 43 -
The amounts payable to PSAGL pertain to cash advances for Parent Company’s trading
transactions. These are non-interest bearing and are due on demand.
Advances from IAPL include unremitted dividend income from dividends declared by WEPL.
This is non-interest bearing and is due on demand.
As of December 31, 2011 and 2010, no provision for credit losses has been recognized for the
amounts due from related parties.
In 2010, the Parent Company recognized dividend income amounting P=0.60 million from
dividends declared by ISPL. In 2009, the Parent Company’s dividend income includes dividends
declared by ISPL (P=14.40 million), IRCL (P=9.54 million), WEPL (P=3.93 million), IAPL (P=3.30)
and PSAGL (P=3.07 million).
The compensation of the key management personnel of the Parent Company in 2011, 2010 and
2009 are as follows:
2011 2010 2009
Short-term employee benefits P=21,310,932 P=19,605,330 P=17,836,472
Post-employment benefits 1,571,444 549,541 721,632
Share-based payment − – 435,303
P=22,882,376 P=20,154,871 P=18,993,407
23. Income Taxes
The provision for income tax consists of:
2011 2010 2009
Current
RCIT P=23,174,172 P=15,785,947 P=25,662,740
Final 589,871 643,945 1,534,105
P=23,764,043 P=16,429,892 P=27,196,845
Republic Act (RA) No. 9337, An Act Amending National Internal Revenue Code, provides that the
RCIT rate shall be 35.00% until December 31, 2008. Starting January 1, 2009, the RCIT rate shall
be 30.00%. It also provides that the interest allowed as a deductible expense is reduced by an
amount equivalent to 42.00% until December 31, 2008 and 33.00% starting January 1, 2009 of
interest income subjected to final tax.
An MCIT of 2.00% on modified gross income is computed and compared with the RCIT. Any
excess of the MCIT over the RCIT is deferred and can be used as a tax credit against future
income tax liability for the next three years. In addition, current tax regulations provide for the
ceiling on the amount of entertainment, amusement and recreation (EAR) expenses that can be
claimed as a deduction against taxable income. The actual EAR expenses incurred by the Parent
Company was P=4.46 million, P=2.84 million and P=2.62 million in 2011, 2010 and 2009,
respectively. The allowed EAR limit was P=4.90 million, P=4.63 million and P=4.73 million in 2011,
2010 and 2009, respectively. Under the regulation, EAR expenses allowed as deductible expense
for taxpayers engaged in the sale of services, including exercise of profession and use of lease
properties, like the Parent Company, is limited to the actual EAR paid or incurred but not to
exceed 1.00% of net revenue.
*SGVMC116501*

- 44 -
RA No. 9504, An Act Amending National Internal Revenue Code, provides that starting
July 1, 2008, the optional standard deduction (OSD) equivalent to 40.00% of gross income may be
claimed as an alternative deduction in computing for the RCIT. For the 2011 and 2010 RCIT
computation, the Parent Company elected to claim itemized expense deductions instead of the
OSD.
As of December 31, 2011 and 2010, the deferred tax assets and liability recognized by the Parent
Company relates to the tax effects of the following:
2011 2010
Deferred tax assets on:
Accrued courier charges P=245,354 P=249,069
Other accrued expenses 184,629 −
Retirement liability − 281,692
Subtotal
Less deferred tax liability on
429,983 530,761
Unrealized foreign exchange gain 361,652 530,761
Retirement asset 68,331 −
Subtotal 429,983 530,761
Net deferred tax assets P=– P=–
The Parent Company did not set up deferred tax assets on the following temporary differences:
2011 2010
Temporary differences on:
Accrued interest P=1,994,506 P=2,074,213
Accrued courier charges − 393,793
Others 808,582 381,961
P=2,803,088 P=2,849,967
The management of the Parent Company believes that it is not highly probable that these
temporary differences will be realized in the future.
A reconciliation of the statutory income tax rates and the effective income tax rates in 2011, 2010
and 2009 follows:
2011 2010 2009
Statutory income tax 30.00% 30.00% 30.00%
Tax effects of:
Unrecognized deferred tax asset (0.02) (1.15) (2.59)
Interest income subject to final tax (0.37) (0.57) (0.77)
Nondeductible interest expense 0.37 0.56 0.76
Effective income tax 29.98% 28.84% 27.40%
24. Contingencies
The Parent Company has various contingencies arising in the ordinary conduct of business which
have either pending decision by the courts or are being contested, the outcome of which are not
presently determinable.
*SGVMC116501*

- 45 -
In the opinion of management and its legal counsel, the eventual liability under these lawsuits or
claims, if any, will not have a material or adverse effect on the Parent Company’s financial
position and results of operations. The information usually required by PAS 37 is not disclosed on
the grounds that it can be expected to prejudice the outcome of these lawsuits, claims and
assessments.
25. Approval of the Release of the Parent Company Financial Statements
The accompanying financial statements of the Parent Company were approved and authorized for
issue by the BOD on March 23, 2012.
26. Supplementary Information Required Under Revenue Regulations No. 19-2011
On December 9, 2011, the BIR issued RR No. 19-2011 prescribing the new income tax forms to
be used effective calendar year 2011. In the case of corporations using BIR Form 1702, the
taxpayer is now required to include as part of its notes to the financial statements, schedules and
information on taxable income and deductions.
In compliance with the requirements set forth by RR 19-2011, the schedule and information of
taxable income and deductions are as follows:
Service income P=490,087,163
Cost of services 175,332,116
314,755,047
Non-Operating Taxable Other Income
Miscellaneous Income 14,350,754
Total Gross Income 329,105,801
Less: Itemized deductions
Salaries and Allowances 89,059,553
Interest 38,322,540
Advertising and promotions 28,248,090
Transportation and travel 21,159,472
Rent 14,230,999
Communication, Light and Water 13,782,359
Office Supplies 8,941,140
Professional fees 8,488,153
Taxes and Licenses 6,726,300
Depreciation and amortization 6,535,059
Representation and entertainment 4,459,545
Insurance 814,865
Repairs and maintenance 691,037
Miscellaneous 7,169,373
Others 3,230,078
251,858,563
Net Taxable Income P=77,247,238
*SGVMC116501*

- 46 -
27. Supplementary Information Required Under Revenue Regulations No. 15-2010
The Parent Company reported and/or paid the following types of taxes in 2011:
Value added tax (VAT)
The Parent Company’s sales are subject to output VAT while its purchases from other VATregistered
individuals or corporations are subject to input VAT. The VAT rate is 12.0%.
a. Output VAT for 2011
Zero-rated sales of goods and services consist of export sales and those rendered to persons or
entities whose exemptions are provided under special laws or international agreements to
which the Philippines is a signatory.
The Parent Company, being engaged in the business of fund transfer and remittance services
of any form or kind of currencies or monies, is registered as a zero-rated VAT taxpayer under
Section 108 (B)(2) of NIRC .
By way of exception, the Parent Company started collecting service fee from the Social
Security System in July 2011 for contributions remitted by SSS members abroad to the foreign
subsidiary offices of the Parent Company and released subsequently to SSS’s offices by the
Parent Company. The output VAT recognized related to the service fee collected amounts to
P=17,875 as of December 31, 2011.
b. Input VAT
Amount
Balance at January 1, 2011 P=28,493,804
Current year’s domestic purchases/payments for:
Goods other than for resale or manufacture −
Capital goods subject to amortization 24,493
Capital goods not subject to amortization 11,820
Services lodged under other accounts 307,055
Total 28,837,172
Write-off (2,058,616)
Penalty (6,250)
Claims for Tax Credit/Refund (5,529,581)
Balance at December 31, 2011 P=21,242,725
c. Withholding taxes
Details of total remittances in 2011 and balance as of December 31, 2011 of withholding taxes
are as follows:
Total Remittances Balance
Withholding taxes on compensation and benefits P=9,242,698 P=284,404
Expanded withholding taxes 6,400,381 534,725
P=15,643,079 P=819,129
*SGVMC116501*

- 47 -
Taxes and licenses
Other taxes and licenses include all other taxes, local and national, recognized as ‘Taxes and
licenses’. Details follow:
Amount
Documentary stamp taxes:
Applied on loans P=3,708,779
Applied on other transactions 323,286
Licenses and permits 2,163,071
Others 531,164
P=6,726,300
*SGVMC116501*

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

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

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 (632) 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, 2012
Period Ended Date
(Secondary License Type and File Number)
SEC Number A200101631
PSE Code
File Number

ASSETS
I-REMIT, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
Unaudited Audited
Mar. 31, 2012 Dec. 31, 2011
Current Assets
Cash and cash equivalents 1,151,790,714 891,235,623
Financial assets at fair value through profit or loss 109,017,759 125,226,264
Accounts receivable 781,790,402 933,545,989
Other receivables 82,784,461 114,431,259
Other current assets 15,177,939 28,928,836
Total Current Assets 2,140,561,275 2,093,367,971
Noncurrent Assets
Investments in associates 18,649,016 23,064,091
Property and equipment - net 23,336,044 19,207,458
Goodwill 92,980,773 92,655,340
Deferred tax asset 7,186,380 4,980,348
Software costs - net 1,591,865 1,450,944
Retirement asset 368,394 368,394
Other noncurrent assets 40,754,263 38,904,367
Total Noncurrent Assets 184,866,735 180,630,942
2,325,428,010 2,273,998,913
LIABILITIES AND EQUITY
Current Liabilities
Beneficiaries and other payables 303,386,845 240,081,152
Income tax payable 16,419,879 6,563,877
Interest-bearing loans 618,000,000 666,000,000
Total Current Liabilities 937,806,724 912,645,029
Noncurrent Liabilities
Retirement liability 92,099 0
Deferred tax liability 32,313 31,969
Total Noncurrent Liabilities 124,412 31,969
Total Liabilities 937,931,136 912,676,998
Equity Attributable to Equity Holders of
the Parent Company
Capital stock 617,725,800 617,725,800
Capital paid-in excess of par value 391,232,478 391,232,478
Retained earnings 474,009,002 440,654,359
Cumulative translation adjustment (42,350,458) (35,303,514)
Treasury stock (53,119,948) (52,987,208)
1,387,496,874 1,361,321,915
Noncontrolling Interest 0 0
Total Equity 1,387,496,874 1,361,321,915
2,325,428,010 2,273,998,913
1

I-REMIT, INC. AND SUBSIDIARIES
Consolidated Statements of Income
Unaudited Unaudited
Jan. 1 to Jan. 1 to
Mar. 31, 2012 Mar. 31, 2011
REVENUE
Delivery fees 132,436,858 128,162,854
Realized foreign exchange gains - net 66,835,913 85,976,112
Other fees 79,104 207,386
199,351,875 214,346,352
COSTS OF SERVICES
Bank charges 47,905,668 45,629,322
Delivery charges 3,194,145 3,169,479
51,099,813 48,798,801
GROSS INCOME 148,252,062 165,547,551
OTHER OPERATING INCOME (LOSS)
Net trading gains (loss) 5,829,999 2,088,822
Other income 3,075,304 (5,909,955)
8,905,303 (3,821,133)
OPERATING EXPENSES
Salaries, wages and employee benefits 58,959,274 62,258,705
Rental 14,313,814 13,857,319
Marketing 6,892,916 9,188,279
Professional fees 6,997,497 10,827,036
Transportation and travel 4,523,776 6,955,819
Communication, light and water 6,435,976 6,392,805
Photocopying and supplies 2,776,132 2,773,347
Depreciation and amortization 2,742,410 3,268,675
Entertainment, amusement and recreation 1,609,160 919,309
Other operating expenses 6,988,194 4,267,316
112,239,149 120,708,610
TOTAL OPERATING INCOME 44,918,216 41,017,808
Equity in net earnings of associates 481,496 660,427
Interest income 2,824,172 3,738,367
Interest expense (5,771,869) (8,324,962)
INCOME BEFORE TAX FROM
CONTINUING OPERATIONS 42,452,015 37,091,640
PROVISION FOR INCOME TAX 9,097,372 8,724,086
INCOME FROM CONTINUING OPERATIONS 33,354,643 28,367,554
INCOME (LOSS) AFTER TAX FROM
DISCONTINUED OPERATIONS 0 0
NET INCOME 33,354,643 28,367,554
Attributable to:
Equity holders of the Parent Company 33,354,643 31,531,076
Noncontrolling interest 0 (3,163,522)
33,354,643 28,367,554
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, 2012 Mar. Mar. 31, 2011
CAPITAL FUNDS, BEGINNING 1,361,321,915 1,271,902,623
Add / (Deduct) Changes in Capital:
Net Income for the Period 33,354,643 31,531,076
Acquisition of Minority Interest 0 (4,914,297)
Purchase of Own Stock (132,740) 0
Other Equity Adjustment (7,046,944) (11,627,256)
CAPITAL FUNDS, ENDING 1,387,496,874 1,286,892,146
3

I-REMIT, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Unaudited Unaudited
Jan. 1 to Jan. 1 to
Mar. 31, 2012 Mar. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Income before tax from continuing operations 42,452,015 37,091,640
Income (loss) before tax from discontinued operations 0 0
Income before tax
Adjustments for:
42,452,015 37,091,640
Interest expense
Unrealized market valuation (gain) loss on financial
instruments at fair value through profit or loss
5,771,869 8,324,962
(16,593,655) (13,803,422)
Depreciation and amortization 2,742,410 3,214,537
Interest income (2,824,171) (3,738,367)
Equity in net earnings of associates (481,496) (660,427)
Unrealized foreign exchange gain - net
Changes in Operating Assets and Liabilities:
Decrease (Increase) in the amounts of:
(3,064,563) 8,321,898
Financial Assets at FV through PL 32,802,160 5,674,600
Accounts receivables 154,820,150 683,923
Other receivables 30,538,108 (117,686,781)
Other current assets
Increase (Decrease) in the amounts of:
13,750,897 18,806,355
Beneficiaries and other payables 63,305,693 334,210,994
Retirement liability 92,099 0
Net cash used in operations 323,311,516 280,439,912
Income taxes paid (1,447,058) (724,156)
Interest received 3,932,861 2,781,083
Interest paid (5,771,869) (8,868,102)
Net cash provided by (used in) operating activities 320,025,450 273,628,737
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Noncontrolling interest in subsidiaries 0 (11,097,286)
Property and equipment (6,503,429) (3,408,419)
Software cost (418,397) (902,426)
Decrease (increase) in other noncurrent assets (1,849,896) (451,968)
Proceeds from disposals of property and equipment 11,719 23,250
Dividends received from associate 4,896,570 0
Net cash used in investing activities (3,863,433) (15,836,849)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of:
Short-term loans payable (666,000,000) (877,000,000)
Buy-back of shares (132,740) 0
Proceeds from short-term loans payable 618,000,000 701,000,000
Net cash provided by (used in) financing activities (48,132,740) (176,000,000)
EFFECT OF CHANGE IN FOREIGN EXCHANGE
RATE TO CASH AND CASH EQUIVALENTS (7,474,186) (4,193,633)
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENT 260,555,091 77,598,255
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 891,235,623 883,817,947
CASH AND CASH EQUIVALENTS AT
END OF YEAR 1,151,790,714 961,416,202
4

I-REMIT, INC. AND SUBSIDIARIES
Aging of Consolidated Receivables
Unaudited
March 31, 2012
Total Current 2-30 Days 31-60 Days Over 60 Days
Agents 775,789,070 775,789,070
-
-
-
Couriers 9,928,743 - 9,928,743
-
-
Related Parties 25,131,100 -
-
- 25,131,100
Others 53,725,950 -
-
- 53,725,950
864,574,863 775,789,070 9,928,743 - 78,857,050
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, 2012 (unaudited) and December 31, 2011
(audited);
b. Unaudited Comparative Consolidated Statements of Income for the three (3) months
ended March 31, 2012 and March 31, 2011;
c. Unaudited Comparative Consolidated Statements of Changes in Equity for the three (3)
months ended March 31, 2012 and March 31, 2011;
d. Unaudited Comparative Consolidated Statements of Cash Flows for the three (3) months
ended March 31, 2012 and March 31, 2011;
e. Unaudited Aging of Consolidated Receivables as of March 31, 2012.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of
Operations
March 31, 2012 vs. December 31, 2011
The total assets of the Company increased by PHP 51.4 million or 2.3% to PHP 2.325 billion
as of March 31, 2012 against PHP 2.273 billion as of December 31, 2011. Cash and cash
equivalents increased by PHP 260.6 million or 29.2% from PHP 891.2 million as of December
31, 2011 to PHP 1.151 billion as of March 31, 2012. Financial assets at FVPL, which consist
of investments in private debt securities (listed overseas) held for trading, decreased by PHP
16.2 million or -12.9% from PHP 125.2 million as of December 31, 2011 to PHP 109.0 million
as of March 31, 2012. Accounts receivable decreased by PHP 151.8 million or -16.3% from
PHP 933.5 million as of December 31, 2011 to PHP 781.8 million as of March 31, 2012.
Other receivables decreased by PHP 31.6 million or -27.7% from PHP 114.4 million as of
December 31, 2011 to PHP 82.8 million as of March 31, 2012. Other current assets
decreased by PHP 13.8 million or -47.5% from PHP 28.9 million as of December 31, 2011 to
PHP 15.2 million as of March 31, 2012. Investments in associates decreased by PHP 4.4
million or -19.1% from PHP 23.0 million as of December 31, 2011 to PHP 18.6 million as of
March 31, 2012. Property and equipment-net increased by PHP 4.1 million or 21.5% from
PHP 19.2 million as of December 31, 2011 to PHP 23.3 million as of March 31, 2012.
Goodwill increased by PHP 0.3 million or 0.3% from PHP 92.7 million as of December 31,
2011 to PHP 93.0 million as of March 31, 2012 due to foreign exchange adjustment. Deferred
tax asset increased by PHP 2.2 million or 44.3% from PHP 5.0 million as of December 31,
2011 to PHP 7.2 million as of March 31, 2012. Software costs–net increased by PHP 0.1
million or 9.7% from PHP 1.4 million as of December 31, 2011 to PHP 1.6 million as of March
31, 2012. Other noncurrent assets increased by PHP 1.8 million or 4.7% from PHP 38.9
million as of December 31, 2011 to PHP 40.8 million as of March 31, 2012.
6

Total liabilities increased by PHP 25.2 million or 2.8% from PHP 912.7 million as of December
31, 2011 to PHP 937.9 million as of March 31, 2012. Current liabilities increased by PHP 25.2
million or 2.8% from PHP 912.6 million as of December 31, 2011 to PHP 937.8 million as of
March 31, 2012 mainly due to the increase in Beneficiaries and other payables by PHP 63.3
million or 26.4% from PHP 240.0 million as of December 31, 2011 to PHP 303.4 million as of
March 31, 2012. Interest-bearing loans decreased by PHP 48.0 million or -7.2% from PHP
666.0 million as of December 31, 2011 to PHP 618.0 million as of March 31, 2012. Interestbearing
loans consist of unsecured, short-term peso-denominated loans from various local
financial institutions with interest rates ranging from 5.0% to 6.75% per annum in First Quarter
2012 and 5.0% to 7.0% in 2011.
Accounts payable and other liabilities increased by PHP 73.2 million or 29.7% to PHP 319.8
million as of March 31, 2012 compared with PHP 246.6 million as of December 31, 2011.
Comprising Accounts payable and other liabilities are payables to beneficiaries of PHP 232.9
million, payables to agents, couriers and trading clients of PHP 34.6 million, accrued
expenses of PHP 17.2 million, withholding tax payable of PHP 2.2 million, advances from
related parties of PHP 12.2 million, income tax payable of PHP 16.4 million, payables to
government agencies of PHP 1.4 million, and other non-trade payables of PHP 2.9 million.
Noncurrent liabilities amounting to PHP 0.12 million as of March 31, 2012 consist of
retirement liability of PHP 0.09 million and deferred tax liability of PHP 0.03 million.
The Company’s stockholders’ equity as of March 31, 2012 stood at PHP 1.387 billion, higher
by PHP 26.2 million or 1.9% against the year-end 2011 level of PHP 1.361 billion due to
higher net income.
The Bangko Sentral ng Pilipinas reported last month that money transfers by overseas
Filipinos grew by 5.8% to USD1.587 billion in February 2012 from USD1.5 billion a year
earlier. On a year-to-date basis, the total remittance inflows amounted to USD3.144 billion in
January to February of 2012, growing by 5.6% against the inflows of USD2.977 billion in the
first two (2) months of 2011. The continued inflow of remittances is supported by the
sustained demand for Filipino manpower in various foreign labor markets. The Philippine
Overseas Employment Administration (POEA) recently announced that it expects over a
million highly skilled Filipino workers would be hired abroad this year. The latest data from the
POEA showed that for the period January-March 2012, job orders for professional and
technical, service and production workers increased 24.6% to 200,010 compared with the
same period last year. These are mainly intended for employment opportunities in Saudi
Arabia, United Arab Emirates, Qatar, Taiwan, Kuwait, Singapore and Hong Kong, among
others.
7

Below are the comparative key performance indicators of the Company and its subsidiaries:
Performance Indicator Definition Mar. 31, 2012 Dec. 31, 2011
Net income* over average
(Three Months) (Full Year)
Return on Equity (ROE) stockholders’ equity during
the period
2% 10%
Return on Assets
(ROA)
Net income* over average
total assets during the period
1% 5%
Earnings per Share
(EPS)
Net income* over average
number of outstanding shares
Total transaction value in
PHP 0.06 PHP 0.22
Sales Growth
USD in present period over
the previous year
47% 17%
Gross Income
Revenue less total cost of
services (PHP millions)
148.2 588.4
* 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 period ended
March 31, 2012 and for the year ended December 31, 2011 are PHP 0.06 and PHP 0.23, respectively.
Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition Mar. 31, 2012
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)
8
(Three Months)
Dec. 31, 2011
(Full Year)
0.5% 56%
0.2% 22%
PHP 0.46 PHP 43.64
-5% 2%
21.9 92.6

Lucky Star Management Limited
Performance Indicator Definition Mar. 31, 2012
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
(Three Months)
IRemit Global Remittance Limited
Performance Indicator Definition Mar. 31, 2012
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, 2011
(Full Year)
-7% -3%
-2% -1%
PHP -3.08 PHP -1.33
-14% -25%
3.5 17.0
(Three Months)
I-Remit Australia Pty Ltd
Performance Indicator Definition Mar. 31, 2012
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, 2011
(Full Year)
-96% -767%
-3% -33%
PHP -20,881.96 PHP -108,090.79
61% 28%
18.4 50.7
(Three Months)
Dec. 31, 2011
(Full Year)
0.1% 0.4%
0.04% 0.2%
PHP 2,225.00 PHP 7,306.00
- -
0.05 0.6

Worldwide Exchange Pty Ltd
Performance Indicator Definition Mar. 31, 2012
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
(Three Months)
I-Remit New Zealand Limited
Performance Indicator Definition Mar. 31, 2012
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, 2011
(Full Year)
0.3% 6%
0.04% 1%
PHP 0.13 PHP 3.02
32% 11%
9.2 34.6
(Three Months)
IREMIT Remittance Consulting GmbH
Performance Indicator Definition Mar. 31, 2012
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, 2011
(Full Year)
19% 40%
-14% -24%
PHP -1,908.51 PHP -3,046.61
39% 23%
-0.7 5.3
(Three Months)
Dec. 31, 2011
(Full Year)
-22% 194%
-4% 14%
PHP -35.28 PHP 141.86
-99% -19%
0.03 0.5

Power Star Asia Group Limited
Performance Indicator Definition Mar. 31, 2012
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
March 31, 2012 vs. March 31, 2011
Revenue less total cost of
services (PHP millions)
11
(Three Months)
Dec. 31, 2011
(Full Year)
8% 30%
8% 29%
PHP 22.46 PHP 66.53
- -
17.2 70.4
I-Remit realized a consolidated net income of PHP 33.4 million in First Quarter 2012, an
increase of PHP 5.0 million or 17.6% over the consolidated net income of PHP 28.4 million in
First Quarter 2011.
Revenues decreased by PHP 15.0 million or -7.0% to PHP 199.3 million in First Quarter 2012
from PHP 214.3 million in First Quarter 2011. Accordingly, the Company’s gross income
decreased by PHP 17.3 million or -10.4% from PHP 165.5 million in First Quarter 2011 to
PHP 148.2 million in First Quarter 2012.
Transaction count increased by 4.4% from 698,007 in First Quarter 2011 to 728,465 in First
Quarter 2012). USD remittance volume increased by 47.3% from USD 320.4 million in First
Quarter 2011 to USD 471.8 million in First Quarter 2012). Of the total transaction count in
First Quarter 2012, the percentage contributions per region are as follows: Asia-Pacific, 43%;
Middle East, 29%; North America, 13%; and Europe, 12%. In terms of USD remittance
volume, the regional contributions are as follows: Asia-Pacific, 26%; Middle East, 13%, North
America, 10%, and Europe, 9%.
Other operating income increased by PHP 12.7 million from a net loss of PHP 3.8 million in
First Quarter 2011 to an income of PHP 8.9 million in First Quarter 2012.
Total operating expenses was lower by PHP 8.5 million or -7.0% from PHP 120.7 million in
First Quarter 2011 to PHP 112.2 million in First Quarter 2012 mainly on account of lower
professional fees, salaries, wages and employee benefits, transportation and travel, and
marketing expenses. Interest expense was lower by PHP 2.6 million from PHP 8.3 million in
First Quarter 2011 to PHP 5.8 million in First Quarter 2012.
The total assets of the Company decreased by PHP 212.4 million or -8.4% to PHP 2.325
billion as of March 31, 2012 against PHP 2.537 billion as of March 31, 2011. Cash and cash
equivalents increased by PHP 190.4 million or 19.8% from PHP 961.4 million as of March 31,
2011 to PHP 1.151 billion as of March 31, 2012. Financial assets at FVPL, which consist of
investments in private debt securities (listed overseas) held for trading, stood at PHP 109.0

million as of March 31, 2012, a decrease of PHP 2.0 million or -1.8% against PHP 111.0
million as of March 31, 2011. Receivables decreased by PHP 387.8 million or -31.0% from
PHP 1.252 billion as of March 31, 2011 to PHP 864.6 million as of March 31, 2012. Other
current assets decreased by PHP 2.7 million or -15.1% from PHP 17.9 million as of March 31,
2011 to PHP 15.2 million as of March 31, 2012. Investments in associates decreased by PHP
2.9 million or -13.6% from PHP 21.6 million as of March 31, 2011 to PHP 18.6 million as of
March 31, 2012. Property and equipment-net decreased by PHP 4.8 million or -17.0% from
PHP 28.1 million as of March 31, 2011 to PHP 23.3 million as of March 31, 2012. Goodwill
decreased by PHP 1.5 million or -1.6% from PHP 94.5 million as of March 31, 2011 to PHP
93.0 million as of March 31, 2012 due to foreign exchange adjustment. Deferred tax asset
increased by PHP 1.9 million or 36.5% from PHP 5.3 million as of March 31, 2011 to PHP 7.2
million as of March 31, 2012. Software costs–net decreased by PHP 1.0 million or -38.8%
from PHP 2.6 million as of March 31, 2011 to PHP 1.6 million as of March 31, 2012. Other
noncurrent assets decreased by PHP 2.3 million or -5.4% from PHP 43.1 million as of March
31, 2011 to PHP 40.8 million as of March 31, 2012.
Total liabilities decreased by PHP 313.0 million or -25.0% from PHP 1.250 billion as of March
31, 2011 to PHP 937.9 million as of March 31, 2012. Current liabilities decreased by PHP
312.4 million or -25.0% from PHP 1.250 billion as of March 31, 2011 to PHP 937.8 million as
of March 31, 2012 mainly due to the decrease in beneficiaries and other payables by PHP
229.8 million or -43.1 from PHP 533.2 million as of March 31, 2011 to PHP 303.4 million as of
March 31, 2012 as well as to interest-bearing loans by PHP 83.0 million or -11.8 from PHP
701.0 million as of March 31, 2011 to PHP 618.0 million as of March 31, 2012. Interestbearing
loans consist of unsecured, short-term peso-denominated loans from various local
financial institutions with interest rates ranging from 5.0% to 6.75% per annum in First Quarter
2012 and 5.0% to 6.0% in First Quarter 2011.
Accounts payable and other liabilities decreased by PHP 229.4 million or -41.8% to PHP
319.8 million as of March 31, 2012 compared with PHP 549.2 million as of March 31, 2011.
Comprising accounts payable and other liabilities are payables to beneficiaries of PHP 232.9
million, payables to agents, couriers and trading clients of PHP 34.6 million, accrued
expenses of PHP 17.2 million, withholding tax payable of PHP 2.2 million, advances from
related parties of PHP 12.2 million, income tax payable of PHP 16.4 million, payables to
government agencies of PHP 1.4 million, and other non-trade payables of PHP 2.9 million.
Noncurrent liabilities amounting to PHP 0.12 million as of March 31, 2012 consist of
retirement liability of PHP 0.09 million and deferred tax liability of PHP 0.03 million.
The Company’s stockholders’ equity as of March 31, 2012 stood at PHP 1.387 billion, higher
by PHP 100.6 million or 7.8% against the March 31, 2011 level of PHP 1.286 billion due to
higher net income and stock dividend.
The Bangko Sentral ng Pilipinas reported last month that money transfers by overseas
Filipinos grew by 5.8% to USD1.587 billion in February 2012 from USD1.5 billion a year
earlier. On a year-to-date basis, the total remittance inflows amounted to USD3.144 billion in
January to February of 2012, growing by 5.6% against the inflows of USD2.977 billion in the
first two (2) months of 2011. The continued inflow of remittances is supported by the
sustained demand for Filipino manpower in various foreign labor markets. The Philippine
Overseas Employment Administration (POEA) recently announced that it expects over a
million highly skilled Filipino workers would be hired abroad this year. The latest data from the
POEA showed that for the period January-March 2012, job orders for professional and
technical, service and production workers increased 24.6% to 200,010 compared with the
same period last year. These are mainly intended for employment opportunities in Saudi
Arabia, United Arab Emirates, Qatar, Taiwan, Kuwait, Singapore and Hong Kong, among
others.
12

Below are the comparative key performance indicators of the Company and its subsidiaries:
Performance Indicator Definition Mar. 31, 2012 Mar. 31, 2011
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 0.06 PHP 0.05
Sales Growth
USD in present period over
the same period in the
previous year
47% 9%
Gross Income
Revenue less total cost of
services (PHP millions)
148.2 165.5
* 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, 2012 and March 31, 2011 are P 0.06 and P 0.05, respectively.
Below are the comparative key performance indicators of the Company’s subsidiaries:
International Remittance (Canada) Ltd.
Performance Indicator Definition Mar. 31, 2012
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)
13
(Three Months)
Mar. 31, 2011
(Three Months)
0.5% 5%
0.2% 2%
PHP 0.46 PHP 3.12
-5% 7%
21.9 23.7

Lucky Star Management Limited
Performance Indicator Definition Mar. 31, 2012
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)
14
(Three Months)
IRemit Global Remittance Limited
Performance Indicator Definition Mar. 31, 2012
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, 2011
(Three Months)
-7% 19%
-2% 9%
PHP -3.08 PHP 10.39
-14% -29%
3.5 6.7
(Three Months)
I-Remit Australia Pty Ltd
Performance Indicator Definition Mar. 31, 2012
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, 2011
(Three Months)
-96% 5%
-3% 1%
PHP -20,881.96 PHP 1,650.29
61% 15%
18.4 10.5
(Three Months)
Mar. 31, 2011
(Three Months)
0.1% 0.1%
0.04% 0.1%
PHP 2,225.00 PHP 2,433.00
- -
0.05 0.1

Worldwide Exchange Pty Ltd
Performance Indicator Definition Mar. 31, 2012
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
(Three Months)
I-Remit New Zealand Limited
Performance Indicator Definition Mar. 31, 2012
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, 2011
(Three Months)
0.3% -40%
0.04% -5%
PHP 0.13 PHP -15.52
32% 21%
9.2 7.5
(Three Months)
IREMIT Remittance Consulting GmbH
Performance Indicator Definition Mar. 31, 2012
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, 2011
(Three Months)
19% 11%
-14% -6%
PHP -1,908.51 PHP -719.31
39% 19%
-0.7 1.4
(Three Months)
Mar. 31, 2011
(Three Months)
-22% 149%
-4% -22%
PHP -35.28 PHP -180.05
-99% 19%
0.03 8.3

Power Star Asia Group Limited
Performance Indicator Definition Mar. 31, 2012
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
(Three Months)
Mar. 31, 2011
(Three Months)
8% 11%
8% 11%
PHP 22.46 PHP 22.72
- -
17.2 21.7
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.

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 23 to 24.
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 18 to 22.
(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 22.
(4) Explanation of how risk is incorporated and considered in the valuation of
assets or liabilities.
Please refer to pages 22 to 24.
(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 22 to 24.
17

Summary of Significant Accounting Policies
Financial Instruments - Initial Recognition and Subsequent Measurement
Initial Recognition
Financial instruments within the scope of PAS 39 are classified as financial assets at
FVPL, loans and receivables, held-to-maturity (HTM) investments, available-for-sale
(AFS) investments, financial liabilities at FVPL and other financial liabilities. The
classification of financial instruments at initial recognition depends on the purpose for
which the financial instruments were acquired and their characteristics. All financial
assets and financial liabilities are recognized initially at fair value plus any directly
attributable cost of acquisition or issue, except in the case of financial assets and
financial liabilities at FVPL. Management determines the classification of its instruments
at initial recognition and, where allowed and appropriate, re-evaluates such designation
at every balance sheet date.
Financial instruments are recognized in the consolidated balance sheet when the Group
becomes a party to the contractual provisions of the instrument. In the case of regular
way of purchase or sale of financial assets, recognition and derecognition, as applicable,
are done using settlement date accounting. Settlement date accounting refers to (a)
recognition of an asset on the day it is received by the Group, and (b) the derecognition
of an asset and recognition of any gain or loss on disposal on the day that it is delivered
by the Group.
The subsequent measurement bases for financial instruments depend on its
classification.
As of March 31, 2012 and December 31, 2011, the Group has no AFS investments, HTM
investments and financial liabilities at FVPL.
Subsequent Measurement
Financial assets at FVPL
Financial assets at FVPL includes financial assets held for trading (HFT) and financial
assets designated upon initial recognition at fair value through profit or loss. Financial
assets are classified as HFT if they are acquired for the purpose of selling and
repurchasing in the near term. Included in this classification are debt securities which
have been acquired principally for trading purposes.
The Group evaluates its HFT investments to determine whether the intention to sell them
in the near term is still appropriate. When in rare circumstances the Group is unable to
trade these financial assets due to inactive markets and management’s intention to sell
them in the foreseeable future significantly changes, the Group may elect to reclassify
these financial assets. The reclassification to loans and receivables, AFS or HTM
depends on the nature of the asset. This evaluation does not affect any financial assets
designated at FVPL using the fair value option at designation, these instruments cannot
be reclassified after initial recognition.
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.
18

Classified under this category are the Group’s HFT investments in debt and equity
securities.
Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. After initial measurement, receivables
are carried at amortized cost using the effective interest method less any allowance for
credit losses. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees and costs that are an integral part of the effective
interest rate (EIR). Gains and losses are recognized in the consolidated statement of
income when the receivables are derecognized or impaired, as well as through the
amortization process. Receivables are classified as current assets when the Group
expects to realize or collect the asset within twelve months from the balance sheet date.
Otherwise, these are classified as non-current assets.
Classified under this category are the Group’s ‘Cash and cash equivalents’, ‘Accounts
receivable’, ‘Other receivables’ and refundable deposits included under ‘Other
noncurrent assets’.
Other financial liabilities
Issued financial instruments or their components, which are not designated as at FVPL,
are classified as other financial liability, where the substance of the contractual
arrangement results in the Group having an obligation either to deliver cash or another
financial asset to the holder, or to satisfy the obligation other than by the exchange of a
fixed amount of cash or another financial asset for a fixed number of its own equity
shares. These include liabilities arising from operations or borrowings. The components
of issued financial instruments that contain both liability and equity elements are
accounted for separately, with the equity component being assigned the residual amount
after deducting from the instrument as a whole the amount separately determined as the
fair value of the liability component on the date of issue.
After initial measurement, other financial liabilities are subsequently measured at
amortized cost using the EIR method.
Other financial liabilities are classified as current liabilities when the Group expects to
settle the liability within twelve months from the balance sheet date. Otherwise, these
are classified as noncurrent liabilities.
Other financial liabilities include ‘Beneficiaries and other payables’ and ‘Interest-bearing
loans’.
Determination of fair value
The fair value for financial instruments traded in active markets at the balance sheet date
is based on their quoted market prices or dealer price quotations (bid price for long
positions and ask price for short positions), without any deduction for transaction costs.
When current bid and ask prices are not available, the price of the most recent
transaction provides evidence of the current fair value as long as there has not been a
significant change in economic circumstances since the time of the transaction.
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.
19

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.
20

Impairment of Financial Assets
The Group assesses at each balance sheet date whether there is an objective evidence
that a financial asset or group of financial assets is impaired. A financial asset or a
group of financial assets is deemed to be impaired if, and only if, there is an objective
evidence of impairment as a result of one or more events that has occurred after the
initial recognition of the asset (an incurred ‘loss event’) and that loss event (or events)
has an impact on the estimated future cash flows of the financial asset or the group of
financial assets that can be reliably estimated. Evidence of impairment may include
indications that the borrower or a group of borrowers is experiencing significant financial
difficulty, default or delinquency in interest or principal payments, the probability that they
will enter bankruptcy or other financial reorganization, and where there are observable
data that indicates that there is a measurable decrease in the estimated future cash
flows, such as changes in arrears or economic conditions that correlate with defaults.
Financial assets carried at amortized cost
For financial assets carried at amortized cost, the Group first assesses whether objective
evidence of impairment exists individually for financial assets that are individually
significant, or collectively for financial assets that are not individually significant.
If there is objective evidence that an impairment loss has been incurred, the amount of
the loss is measured as the difference between the asset’s carrying amount and the
present value of the estimated future cash flows (excluding future credit losses that have
not been incurred). The carrying amount of the asset is reduced through the use of an
allowance account and the amount of loss is charged to the consolidated statement of
income. Interest income continues to be recognized based on the original EIR of the
asset. Receivables, together with the associated allowance accounts, are written off
when there is no realistic prospect of future recovery and all collateral has been realized.
If subsequently, the amount of the estimated impairment loss decreases because of an
event occurring after the impairment was recognized, the previously recognized
impairment loss is reduced by adjusting the allowance account. If a future write-off is
later recovered, any amounts formerly charged are credited to profit or loss.
If the Group determines that no objective evidence of impairment exists for an
individually assessed financial asset, whether significant or not, it includes the asset in a
group of financial assets with similar credit risk characteristics and collectively assesses
for impairment. Those characteristics are relevant to the estimation of future cash flows
for groups of such assets by being indicative of the debtors’ ability to pay all amounts
due according to the contractual terms of the assets being evaluated. Assets that are
individually assessed for impairment and for which an impairment loss is, or continues to
be, recognized are not included in a collective assessment for impairment.
The present value of the estimated future cash flows is discounted at the financial
asset’s original EIR. If a financial asset has a variable interest rate, the discount rate for
measuring any impairment loss is the current EIR, adjusted for the original credit risk
premium.
For the purpose of a collective evaluation of impairment, financial assets are grouped on
the basis of such credit risk characteristics as geographical classification. Future cash
flows in a group of financial assets that are collectively evaluated for impairment are
estimated on the basis of historical loss experience for assets with credit risk
characteristics similar to those in the group.
21

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.
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 FVPL - fair values are based on quoted market prices.
Refundable deposits - fair values are based on the present value of future cash flows
discounted using prevailing interest rates ranging from 2.71% to 8.00% and 4.05% to
10.19% as at March 31, 2012 and December 31, 2011, respectively.
Fair Value Hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:
Level 1: quoted prices in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly (as prices) or indirectly (derived from prices); and
Level 3: inputs that are not based on observable market data or unobservable inputs.
22

As of March 31, 2012 and December 31, 2011, the financial instruments carried at fair
value only pertains to the Group’s financial assets at FVPL, which consist of investments
in debt and equity securities. The fair values of these debt and equity securities are
based on quoted prices (Level 1). There were no transfers between Level 1 and Level 2
fair value measurements, and no transfers into and out of Level 3 fair value
measurement in 2012 and 2011.
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 within the agreed credit terms,
otherwise, the fulfillment or delivery of their remittance transactions will be put on hold;
(c) evaluation of individual potential partners and preferred associates’ creditworthiness,
as well as a close look into the other pertinent aspects of their partners’ businesses
which assures the Group of the financial soundness of their partner firms; and (d)
receivable balances are monitored daily by the regional managers with the result that the
Group’s exposure to bad debts is not significant.
Receivables from agents and couriers are highly collectible and have a turnover ranging
from 1 to 5 days and 30 to 60 days, respectively. Other receivables, which include
advances to related parties, are also highly collectible and are due in less than one year.
There are no past due receivables as of March 31, 2012 and December 31, 2011.
The Group classifies its neither past due nor impaired receivables as high grade. High
grade financial assets includes instruments with credit ratings of excellent, strong, good,
or satisfactory, wherein the borrower has a low probability of default and could withstand
the normal business cycle. Financial assets at FVPL are also assessed as high grade
since these are issued by reputable companies.
23

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, 2012 and December 31, 2011, 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.
Equity Price Risk
Equity price risk is the risk to earnings or capital arising from changes in stock exchange
indices relating to its quoted equity securities. The Group’s exposure to equity price risk
relates primarily to its investments in equity securities.
The Group’s policy is to maintain the risk to an acceptable level. Movement of share
price is monitored regularly to determine impact on its consolidated balance sheet.
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.
24

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, 2011.
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, 2012 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,
2011.
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.
25

MINUTES OF THE ANNUAL STOCKHOLDERS’ MEETING OF
I-REMIT, INC.
29 July 2011, 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 403,523,250
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
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. Ms. Maria Cecilia V. Soria acted as Secretary and 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 4 July 2011 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 were present in person or by proxy, holders of 403,523,250 shares of stocks
entitled to vote, representing an attendance of 72.96% 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 23 July 2010 was dispensed with and the same was approved as
previously circulated to the stockholders.
PRESIDENT’S REPORT AND
2010 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 why the Social
Security System was not listed as among the top 16 shareholders of the Corporation. It was
explained that the SSS shares were counted as part of those held under the name of the PCD
Nominee Corporation, considering that the SSS shares are lodged with the PCD. There being no
other questions, upon motion duly made and seconded, the President’s Report as well as the 2010
1

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 10
March 2011, 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 2011-2012 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
APPOINTMENT OF EXTERNAL AUDITOR
As recommended by the Board of Directors, the stockholders voted for the renewal of the
auditing firm of SGV & Co. as the Corporation’s external auditor. Upon motion duly made and
seconded, the following resolution was approved:
“RESOLVED, that the auditing firm of SGV & Co. be re-appointed as
the Corporation’s external auditor for the year 2011.”
ADJOURNMENT
There being no other business to transact, the meeting was thereupon adjourned.
ATTESTED BY:
BANSAN C. CHOA
Chairman
MARIA CECILIA V. SORIA
Corporate Secretary
F:\data\Clients\685\CORP\MIN\2011 ‐ ASM.doc
685‐200 ABKT/CVS/DRV
2

RELEVANT RESOLUTIONS APPROVED BY THE BOARD OF DIRECTORS
MEETING OF THE BOARD OF DIRECTORS
June 17, 2011
August 19, 2011
(June 2011 to May 2012)
FOR RATIFICATION BY THE STOCKHOLDERS
1
Annex “F”
The Board of Directors authorized the Corporation to borrow money, arrange and negotiate with the
Security Bank 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 the Bank, with or without
security, in the aggregate amount of Philippine Pesos: Three Hundred Million (₱300,000,000.00) and
Three Million Four Hundred Fifty Thousand Dollars ($3,450,000.00) or the equivalent of said amount
or any portion thereof in foreign currency.
The Board of Directors authorized the Corporation to borrow money, arrange and negotiate with the
Bank of the Philippine Islands for the grant of a credit line facility, to secure trust receipts, to obtain
other credit facilities, to enter into and assume any financial undertaking with the Bank, with or
without security, in the aggregate amount of Philippine Pesos: One Hundred Million
(₱100,000,000.00) and One Hundred Fifty Thousand Dollars ($150,000.00) or the equivalent of said
amount or any portion thereof in foreign currency.
The Board of Directors authorized the Corporation to borrow money, arrange and negotiate with the
China Banking Corporation for the grant of a credit line facility, to secure trust receipts, to obtain other
credit facilities, to enter into and assume any financial undertaking with the Bank, with or without
security, in the aggregate amount of Philippine Pesos: Three Hundred Million (₱300,000,000.00) or
the equivalent of said amount or any portion thereof in foreign currency.
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/or foreign currencies with Mizuho Corporate Bank, Ltd. (Manila Branch) for the account of
the Corporation.
The Board of Directors authorized the Corporation to apply for accreditation with Twenty Two Forty
One Properties, Inc. as a real estate collection partner for the Green Residences project of SM
Development Corporation.
The Board of Directors authorized the Corporation to enroll any and all of their accounts in Maybank
Philippines, Inc. with the bank’s Internet Banking Facility.
The Board of Directors authorized the Corporation to enter into an agreement with Mizuho Corporate
Bank Ltd. – Manila Branch for the purpose of availing of the Bank’s Global Cash Management
Services.
The Board of Directors authorized the Corporation to borrow money, arrange and negotiate with
Chinatrust (Philippines) Commercial Bank Corporation for the grant of a credit line facility, to secure
trust receipts, to obtain other credit facilities, to enter into and assume any financial undertaking with
the Bank, with or without security, in the aggregate amount of Philippine Pesos: Two Hundred Eighty
Million (₱280,000,000.00).
The Board of Directors authorized the Corporation to apply for and obtain with Security Bank
Corporation on accommodation in the form of a Domestic Bills Purchase Line in the aggregate
principal amount of Philippine Pesos: One Hundred Million (₱100,000,000.00), as well as the
temporary excesses or permanent increases thereon as may be approved by the Bank from time to
time, under such terms and conditions as the Bank may require.

September 16, 2011
The Board of Directors authorized the Corporation to establish, open and maintain
securities/investment account(s) with Fidelity Securities, Inc.
The Board of Directors authorized the Corporation to borrow money, arrange and negotiate with East
West Banking Corporation for the grant of a credit line facility, to secure trust receipts, to obtain other
credit facilities, and to enter into and assume any financial undertaking with the Bank, with or without
security, in the aggregate amount of Philippine Pesos: Fifty Million (₱50,000,000.00).
The Board of Directors authorized the Corporation to buy back up to Ten Million (10,000,000) shares
from the public through the facilities of the Philippine Stock Exchange until all the shares have been
purchased or until the Corporation deems that the market price is no longer undervalued.
October 28, 2011
The Board of Directors authorized the Corporation to borrow money, arrange and negotiate with
Union Bank of the Philippines for the grant of a credit line facility, to secure trust receipts, to obtain
other credit facilities, to enter into and assume any financial undertaking with the Bank, with or
without security, in the aggregate amounts of Philippine Pesos: One Billion Seven Hundred Fifty
Million (₱1,750,000,000.00).
The Board of Directors authorized the Corporation to renew its existing bond with Prudential
Guarantee and Assurance Inc., with Policy No. BD-G-16-HOM-0012963 and endorsement number
BD-G16-HOM-0009165A in connection with its accreditation as a non-bank remittance agent by the
Social Security System.
November 18, 2011
The Board of Directors approved the write-off for taxable year 2010 of disallowed creditable input
VAT for the years 2003 and 2004 amounting to P1,338,803.77.
The Board of Directors approved the write-off for taxable year 2011 of disallowed creditable input
VAT for the years 2004 and 2005 amounting to P2,058,615.71.
January 20, 2012
The Board of Directors authorized the Corporation to borrow money, arrange and negotiate with East
West Banking Corporation for the grant of credit line facility, to secure trust receipts, to obtain other
credit facilities, and to enter into and assume any financial undertaking with the Bank, with or without
security, in the aggregate amount of Philippine Pesos: Three Hundred Thirty Million
(P330,000,000.00).
The Board of Directors authorized the Corporation to close its deposit account in United States
Dollars with Union Bank of the Philippines – Emerald Branch for the account of Al Ansari &
Behbehani Exchange Co.
The Board of Directors authorized the Corporation to avail of and enroll in the Optima Online Banking
Facility of Sterling Bank of Asia Inc. in accordance with the terms and conditions imposed by the Bank.
The Board of Directors authorized the Corporation to avail of loans/credit facilities and enter into any
contract or agreement for the purchase or sale of any currency with Equicom Savings Bank up to
the principal amount of Philippine Pesos: Seventy Five Million (P75,000,000.00), or the equivalent
of said amount or any portion thereof in foreign currency; and to enter into any contract for the
renewal and extension of the foregoing transactions, including, wherever necessary, the
restructuring of any loan obligation contracted in connection therewith.
2

February 17, 2012
March 23, 2012
May 18, 2012
The Board of Directors authorized the Corporation to write-off the Corporation’s receivables for the
year ended 31 December 2010 booked under the account “Receivable – Others” amounting to One
Million Four Hundred Thirteen Thousand Nine Hundred Pesos (P 1,413,900.00).
The Board of Directors authorized Mr. Makoto Kinoshita to represent the Corporation 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 relating to the Corporation’s operations, foreign offices,
branches, and agents in Japan.
The Board of Directors authorized the Corporation to establish and open foreign currency deposit
accounts, whether time, current, savings, money market placement and other types of deposit
accounts with Bank Internasional Indonesia.
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 Indonesian
Rupiah with Bank Internasional Indonesia.
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 United States
Dollars with Union Bank of the Philippines – Emerald Avenue Branch for the account of Al Fardan
Exchange.
The Board of Directors authorized the Corporation to close the Corporation’s deposit accounts nos. 2-
8600-44791, 0142-62996-8, and 286-8008375 with Banco de Oro Unibank – Strata Branch.
The Board of Directors authorized the Corporation to enter into an agreement or arrangement with
Chinatrust Commercial Bank Corporation – Ayala Branch for the purpose of opening a cash
management account with the Bank.
The Board of Directors authorized the Corporation to appear before the National Labor Relations
Commission and file the necessary pleadings therein in connection with NLRC-NCR Case No. 04-
05177-12 titled “Junell F. Dassun vs. IRemit, Inc. and Harris D. Jacildo.” The Board of Directors
likewise authorized the law firm of Gerodias Suchianco Estrella to represent the Corporation in said
case.
3