SEC Form 20-IS - iRemit Global Remittance

- 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*