SEC Form 20-IS - iRemit Global Remittance
SEC Form 20-IS - iRemit Global Remittance SEC Form 20-IS - iRemit Global Remittance
- 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*
- Page 43 and 44: Below are the comparative key perfo
- Page 45 and 46: Goodwill decreased by PHP 1.5 milli
- Page 47: IREMIT Remittance Consulting GmbH M
- Page 64 and 65: I-REMIT, INC. AND SUBSIDIARIES NOTE
- Page 66 and 67: - 3 - Statement of Compliance The a
- Page 68 and 69: - 5 - Changes in Accounting Policie
- Page 70 and 71: - 7 - deferred cumulative amount pr
- Page 72 and 73: - 9 - For all other financial instr
- Page 74 and 75: - 11 - Estimates of changes in futu
- Page 76 and 77: - 13 - Gains or losses arising from
- Page 78 and 79: - 15 - Once a financial asset or a
- Page 80 and 81: - 17 - Income Taxes Current tax Cur
- Page 82 and 83: - 19 - Related party relationships
- Page 84 and 85: - 21 - PFRS 13, Fair Value Measurem
- Page 86 and 87: - 23 - d. Discontinued Operations M
- Page 88 and 89: - 25 - As of December 31, 2011 and
- Page 90 and 91: - 27 - The following methods and as
- Page 92 and 93: - 29 - As at December 31, 2011, the
- Page 96 and 97: 6. Cash and Cash Equivalents This a
- Page 98 and 99: 10. Other Current Assets This accou
- Page 100 and 101: Office and Communication Equipment
- Page 102 and 103: - 39 - value of the additional inte
- Page 104 and 105: 16. Interest-Bearing Loans - 41 - T
- Page 106 and 107: - 43 - The Group’s objective is t
- Page 108 and 109: The major categories of plan assets
- Page 110 and 111: - 47 - (f) On July 1, 2011, the Par
- Page 112 and 113: - 49 - In the ordinary course of bu
- Page 114 and 115: - 51 - The table below shows the in
- Page 116 and 117: - 53 - Segment information as of an
- Page 118: - 55 - The results of IRCGmbH’s o
- Page 121 and 122: - 1 - I-REMIT, INC. SCHEDULE OF RET
- Page 123 and 124: - 3 - Schedule II Page 2 of 5 PFRSs
- Page 125 and 126: - 5 - Schedule II Page 4 of 5 Impor
- Page 127 and 128: - 7 - I-REMIT, INC. AND SUBSIDIARIE
- Page 129 and 130: Name of Debtor - 9 - I-Remit, Inc.
- Page 131 and 132: - 11 - I-Remit, Inc. and Subsidiari
- Page 133 and 134: - 13 - I-Remit, Inc. and Subsidiari
- Page 135 and 136: Title of Issue (i) Number of shares
- 31 -<br />
Change in nominal<br />
<strong>20</strong>10<br />
Change in nominal<br />
foreign currency<br />
Effect on foreign currency<br />
Effect on<br />
Currency<br />
exchange rate<br />
equity exchange rate<br />
equity<br />
HKD +0.41 P=14,638,271 -0.08 (P=2,856,248)<br />
CAD +1.75 855,5<strong>20</strong> -2.09 (1,021,735)<br />
EUR +8.87 (299,049) -3.04 102,493<br />
NZD +1.03 (189,295) -3.09 567,885<br />
AUD +0.13 25,632 -7.05 (738,995)<br />
GBP +8.01 355,672 -3.57 (158,5<strong>20</strong>)<br />
Cash Flow Interest Rate Risk<br />
Interest rate risk arises from the possibility that changes in interest rates will affect future cash<br />
flows of financial instruments.<br />
As of December 31, <strong>20</strong>11 and <strong>20</strong>10, the Group’s exposure to cash flow interest rate risk is<br />
minimal. The Group’s policy is to manage its interest cost by entering only into fixed rate shortterm<br />
loans from banks.<br />
Fair Value Interest Rate Risk<br />
Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate due<br />
to changes in market interest rates.<br />
The Group accounts for its debt investments at fair value. Thus, changes in the benchmark interest<br />
rate will cause changes in the fair value of quoted debt instruments.<br />
The following table demonstrates the sensitivity to a reasonably possible change in interest rates,<br />
with all other variables held constant, of the Group’s profit before tax as of December 31, <strong>20</strong>11<br />
and <strong>20</strong>10. There is no impact on the Group’s equity other than those already affecting the profit or<br />
loss.<br />
<strong>20</strong>11 <strong>20</strong>10<br />
Increase in Sensitivity of Increase in Sensitivity of<br />
basis points trading gains basis points trading gains<br />
USD Interest Rate +50bps (2,016,773) +50bps (1,495,140)<br />
USD Interest Rate -50bps 2,099,428 -50bps 1,226,880<br />
Equity Price Risk<br />
Equity price risk is the risk to earnings or capital arising from changes in stock exchange indices<br />
relating to its quoted equity securities. The Group’s exposure to equity price risk relates primarily<br />
to its investments in equity securities.<br />
The Group’s policy is to maintain the risk to an acceptable level. Movement of share price is<br />
monitored regularly to determine impact on its consolidated balance sheet.<br />
Based on the historical movement of the stock exchange index, management’s assessment of<br />
reasonable possible change was determined to be an increase (decrease) of 5.00% in <strong>20</strong>11,<br />
resulting to a possible effect of increase (decrease) of P=0.63 million in the <strong>20</strong>11consolidated<br />
statement of income.<br />
Liquidity Risk<br />
Liquidity or funding risk is the risk that an entity will encounter difficulty in raising funds to meet<br />
commitments associated with financial instruments.<br />
*SGVMC116502*
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