SEC Form 20-IS - iRemit Global Remittance

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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*