Afs (2019)

UniTeller Filipino, Inc.
(A Wholly-owned Subsidiary of
UniTeller Financial Services, Inc.)
Financial Statements
December 31, 2019 and 2018
and
Independent Auditor’s Report

SyCip Gorres Velayo & Co. Tel: (632) 891 0307 BOA/PRC Reg. No. 0001,
6760 Ayala Avenue Fax: (632) 819 0872 October 4, 2018, valid until August 24, 2021
1226 Makati City ey.com/ph SEC Accreditation No. 0012-FR-5 (Group A),
Philippines November 6, 2018, valid until November 5, 2021
INDEPENDENT AUDITOR’S REPORT
The Board of Directors and Stockholders

UniTeller Filipino, Inc.
Opinion
We have audited the financial statements of UniTeller Filipino, Inc. (the Company) (a wholly-owned
subsidiary of UniTeller Financial Services, Inc.), which comprise the statements of financial position as at
December 31, 2019 and 2018, and the statements of comprehensive income, statements of changes in equity
and statements of cash flows for the years then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Company as at December 31, 2019 and 2018, and its financial performance and its cash
flows for the years then ended in accordance with Philippine Financial Reporting Standards (PFRSs).
Basis of Opinion
We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the Code of Ethics
for Professional Accountants in the Philippines (Code of Ethics) together with the ethical requirements that
are relevant to our audit of the financial statements in the Philippines, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with PFRSs, and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
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A member firm of Ernst & Young Global Limited
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with PSA will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
· Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to continue as a going
concern.
· Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
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Report on the Supplementary Information Required under Revenue Regulation No. 15-2010 and
Bangko Sentral ng Pilipinas (BSP) Circular No. 1075
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as
a whole. The supplementary information required under Revenue Regulations 15-2010 in Note 17 and BSP
Circular No. 1075 in Note 18 to the financial statements is presented for purposes of filing with the Bureau
of Internal Revenue and BSP, respectively, and is not a required part of the basic financial statements. Such
information is the responsibility of the management of Uniteller Filipino, Inc. The information has been
subjected to the auditing procedures applied in our audit of the basic financial statements. In our opinion,
the information is fairly stated in all material respects in relation to the basic financial statements taken as
a whole.
SYCIP GORRES VELAYO & CO.
Janeth T. Nuñez-Javier
Partner
CPA Certificate No. 111092
SEC Accreditation No. 1328-AR-2 (Group A),
July 9, 2019, valid until July 8, 2022
Tax Identification No. 900-322-673
BIR Accreditation No. 08-001998-69-2018,
February 26, 2018, valid until February 25, 2021
PTR No. 8125274, January 7, 2020, Makati City
February 28, 2020
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UNITELLER FILIPINO, INC.
(A Wholly-owned Subsidiary of UniTeller Financial Services, Inc.)
STATEMENTS OF FINANCIAL POSITION
December 31
Notes 2019 2018
ASSETS
Current assets
Cash 4, 16 P
=165,332,457 =101,037,825
P
Receivables 5, 16 14,523,352 29,255,723
Due from parent company 9, 16 – 62,169,829
Prepaid expenses and other current assets 6 2,958,257 3,655,936
Total Current Assets 182,814,066 196,119,313
Noncurrent assets
Property and equipment, net 7 5,097,047 2,497,514
Deferred tax assets, net 13 1,909,059 3,506,752
Other noncurrent assets 6, 11, 16 4,083,238 6,078,152
Total Noncurrent assets 11,089,344 12,082,418
Total Assets P
=193,903,410 =208,201,731
P
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued expenses 8, 16 P
=8,657,605 P29,427,518
=
Due to parent company 9, 16 137,735,415 138,797,900
Lease liability - current portion 11 2,994,030 –
Total Current Liabilities 149,387,050 168,225,418
Noncurrent liabilities
Retirement liability 12 1,339,425 4,574,265
Lease liability - net of current portion 11 244,432 –
Due to parent company 9, 10 – 10,268,000
Total Noncurrent Liabilities 1,583,857 14,842,265
Total Liabilities 150,970,907 183,067,683
Equity
Capital stock 10 18,068,000 7,800,000
Reserve for remeasurement of retirement
benefit obligation 12 (870,265) (478,690)
Retained earnings 25,734,768 17,812,738
Total equity 42,932,503 25,134,048
Total liabilities and equity P

=193,903,410 =208,201,731
P
See Notes to the Financial Statements.
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STATEMENTS OF COMPREHENSIVE INCOME
Years Ended December 31

Notes 2019 2018
Revenues
Service fee 9 P
=38,172,003 =40,655,355
P
Commission income 9 3,469,117 3,398,969
41,641,120 44,054,324
Operating expenses
Salaries, wages and employee benefits 9 13,889,435 12,545,266
Professional fees and outside services 5,177,399 5,778,070
Advertising 4,444,721 5,798,568
Depreciation and amortization 7 3,757,305 1,131,520
Commission expense 3,469,117 3,398,969
Insurance 1,959,144 1,404,423
Retirement expense 12 799,167 692,099
Communication 719,107 729,032
Bank charges 651,678 462,626
Utilities 650,259 589,379
Transportation and travel 624,749 1,178,577
Taxes and licenses 479,282 597,404
Dues and subscription 478,995 456,390
Repairs and maintenance 326,773 459,645
Office supplies 254,593 249,910
Rent 11 − 2,591,101
37,681,724 38,062,979
Income from operations 3,959,396 5,991,345
Other income, net 14 6,491,585 1,513,401
Income before income tax 10,450,981 7,504,746
Income tax expense 13 2,528,951 3,270,799
Net income 7,922,030 4,233,947
Other comprehensive income (loss)
Items that will not be reclassified subsequently

to profit or loss
Remeasurement gain (loss) on defined benefit liability,
net of tax 12 (391,575) 348,782
Total comprehensive income P

=7,530,455 =4,582,729
P
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STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018
Reserve for
remeasurement
of retirement
benefit
Capital stock obligation Retained
(Note 10) (Note 12) earnings Total equity
Balances at January 1, 2019 P7,800,000

= (P
=478,690) =17,812,738
P P25,134,048
=
Increase in capital stock 10,268,000 − − 10,268,000
Comprehensive income:
Net income – – 7,922,030 7,922,030
Other comprehensive loss – (391,575) – (391,575)
Balances at December 31, 2019 =18,068,000

P (P
=870,265) =25,734,768
P =42,932,503
P
Balances at January 1, 2018 =7,800,000

P (P
=827,472) =13,578,791
P =20,551,319
P
Comprehensive income:
Net income – – 4,233,947 4,233,947
Other comprehensive income – 348,782 – 348,782
Balances at December 31, 2018 =7,800,000

P (P
=478,690) =17,812,738
P =25,134,048
P
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STATEMENTS OF CASH FLOWS
Years Ended December 31

Notes 2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax P
=10,450,981 =7,504,746
P
Adjustments for:
Provision for (recovery of) losses 14 (13,990,279) 3,273,095
Depreciation and amortization 7 3,757,305 1,131,520
Unrealized foreign exchange loss (gain) 15 97,140 (711,685)
Loss on sale of transportation equipment 14 105,625 –
Retirement benefits paid 12 (4,593,400) –
Interest income 14 (173,973) (137,848)
Interest expense 14 288,845 16,496
Operating income (loss) before working capital changes (3,258,589) 11,768,423
Changes in operating assets and liabilities:
Decrease (increase) in:
Receivables 14,732,371 3,624,518
Due from parent company 62,169,829 (4,343,048)
Prepaid expenses and other current assets (65,761) (324,461)
Other non-current assets (1,546,247) (1,935,369)
Increase (decrease) in:
Accounts payable and accrued expenses (3,647,682) 12,643
Due to parent company (1,154,528) 26,469,018
Net cash flows generated from operations 67,229,393 35,271,724
Interest received 173,973 137,848
Interest paid – (16,496)
Income tax paid – (6,555,046)
Net cash provided by operating activities 67,403,366 28,838,030
CASH FLOWS FROM INVESTING ACTIVITIES

Acquisitions of property and equipment 7 (758,216) (571,705)
Proceeds from sale of property and equipment 7 446,429 –
Net cash used in investing activities (311,787) (571,705)
CASH FLOWS FROM FINANCING ACTIVITIES

Payment of principal portion of lease liabilities 11 (2,791,850) –
Net cash used in financing activities (2,791,850) –
NET INCREASE IN CASH 64,299,729 28,266,325
CASH AT BEGINNING OF THE YEAR 101,037,825 72,937,836

Effect of exchange rate changes on cash (5,097) (166,336)
CASH AT THE END OF THE YEAR 4 P

=165,332,457 =101,037,825
P
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NOTES TO THE FINANCIAL STATEMENTS
1. Corporate Information
UniTeller Filipino, Inc. (the “Company”) was registered with the Philippine Securities and Exchange
Commission (SEC) on February 15, 1999, to engage in the business of remitting, transferring, or
otherwise delivering any kind of foreign currency from abroad into the Philippines either by
telegraphic, wire, electronic transfer or any other manner. The Company was also registered with the
Bangko Sentral ng Pilipinas (BSP) on January 20, 2005, as a remittance agent, subject to the applicable
provisions of law and BSP rules and regulations, as well as the provisions of the Anti-Money
Laundering Act of 2001 (R.A. No. 9160, as amended by R.A. No. 9194) and its implementing rules
and regulations.
The immediate parent of the Company is UniTeller Financial Services, Inc. (UFSI) whichs is based in
the United States of America. The ultimate parent of the Company is Grupo Financiero Banorte which
is based in Mexico.
The registered office address of the Company is located at Unit 2403, 24/F, Trade and Financial Tower,
7th Avenue, BGC, The Fort, Taguig City.
The accompanying financial statements were approved and authorized for issuance by the Board of
Directors (BOD) on February 28, 2020.
2. Summary of Significant Accounting Policies
The principal accounting policies applied in the preparation of these financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with Philippine Financial
Reporting Standards (PFRS). The term PFRS in general includes all applicable PFRS, Philippine
Accounting Standards (PAS), and interpretations of the Philippine Interpretations Committee (PIC),
Standing Interpretations Committee (SIC) and International Financial Reporting Interpretations
Committee (IFRIC) which have been approved by the Financial Reporting Standards Council (FRSC)
and adopted by the SEC.
The financial statements have been prepared on the historical cost basis of accounting.
The financial statements are presented in Philippine peso (P =), which is the Company’s functional
currency. All financial information presented in Philippine peso has been rounded off to the nearest
peso, unless otherwise indicated.
The preparation of financial statements in conformity with PFRS requires the use of certain critical
accounting estimates. It also requires management to exercise its judgment in the process of applying
the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or
areas where assumptions and estimates are significant to the financial statements are disclosed in
Note 3.
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2.2 Changes in accounting policies and disclosure
The accounting policies adopted are consistent with those of the previous financial year except for the
following new, amendments and improvements to PFRS, PAS and Philippine Interpretation which
became effective as of January 1, 2019. Adoption of these pronouncements did not have any significant
impact on the Company’s financial position or performance unless otherwise indicated.
· PFRS 16, Leases
PFRS 16 supersedes PAS 17, Leases, Philippine Interpretation IFRIC 4, Determining whether an
Arrangement contains a Lease, Philippine Interpretation SIC-15, Operating Leases-Incentives and
Philippine Interpretation SIC-27, Evaluating the Substance of Transactions Involving the Legal
Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation
and disclosure of leases and requires lessees to recognize most leases on the balance sheet.
Lessor accounting under PFRS 16 is substantially unchanged from today’s accounting under PAS
17. Lessors will continue to classify all leases using the same classification principle as in PAS 17
and distinguish between two types of leases: operating and finance leases. Therefore, PFRS 16 did
not have an impact for leases where the Company is the lessor.
The Company adopted PFRS 16 using the modified retrospective approach upon adoption of PFRS
16 in 2019 and elects to apply the standard to contracts that were previously identified as leases
applying PAS 17 and Philippine Interpretation IFRIC-4. The Company will therefore not apply the
standard to contracts that were not previously identified as containing a lease applying PAS 17 and
Philippine Interpretation IFRIC-4.
The effect of adoption of PFRS 16 as at January 1, 2019 is, as follows:
Increase
(Decrease)
Assets
Property and equipment =6,362,753
P
Prepaid expenses and other current assets (737,573)
Liabilities
Lease liabilities 5,704,532
Trade and other payables (79,352)
Upon adoption of PFRS 16, the Company applied a single recognition and measurement approach
for all leases except for short-term leases and leases of low-value assets. Refer to Note 2.9 for the
accounting policy beginning January 1, 2019. The standard provides specific transition
requirements and practical expedients, which have been applied by the Company.
Leases previously accounted for as operating leases

The Company recognized right-of-use assets and lease liabilities for those leases previously
classified as operating leases, except for short-term leases and leases of low-value assets. The right-
of-use assets for most leases were recognized based on the carrying amount as if the standard had
always been applied, apart from the use of incremental borrowing rate at the date of initial
application. In some leases, the right-of-use assets were recognized based on the amount equal to
the lease liabilities, adjusted for any related prepaid and accrued lease payments previously
recognized. Lease liabilities were recognized based on the present value of the remaining lease
payments, discounted using the incremental borrowing rate at the date of initial application.
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The Company also applied the available practical expedients wherein it:
· Used a single discount rate to a portfolio of leases with reasonably similar characteristics
· Relied on its assessment of whether leases are onerous immediately before the date of initial
application
· Excluded the initial direct costs from the measurement of the right-of-use asset at the date of
initial application
· Used hindsight in determining the lease term where the contract contained options to extend or
terminate the lease
Based on the above, as at January 1, 2019:
· Property and equipment were recognized amounting to = P6,362,753, representing the amount
of right-of-use assets set up on transition date.
· Additional lease liabilities of =
P5,704,532 were recognized.
· Prepaid expenses and other current assets of P =737,573 representing advance rent and trade and
other payables of =
P79,352 related to previous operating leases arising from straight lining under
PAS 17 were derecognized.
The lease liabilities as at January 1, 2019 can be reconciled to the operating lease commitments as
of December 31, 2018, as follows:
Operating lease commitments as at December 31, 2018 =6,137,518

P
Weighted average incremental borrowing rate as at January 1, 2019 7%
Discounted operating lease commitments as at January 1, 2019 =5,704,532
P
Due to the adoption of PFRS 16, the Company’s operating profit in 2019 will improve, while its
interest expense will increase. This is due to the change in the accounting for rent expense related
to leases that were classified as operating leases under PAS 17.
The adoption of PFRS 16 will not have an impact on equity in 2019, since the Company elected
to measure the right-of-use assets at an amount equal to the lease liability, adjusted by the amount
of any prepaid or accrued lease payments relating to that lease recognized in the statement of
financial position immediately before the date of initial application.
· Philippine Interpretation IFRIC-23, Uncertainty over Income Tax Treatments

· Amendments to PFRS 9, Prepayment Features with Negative Compensation
· Amendments to PAS 19, Employee Benefits, Plan Amendment, Curtailment or Settlement
· Amendments to PAS 28, Long-term Interests in Associates and Joint Ventures
· Annual Improvements to PFRSs 2015-2017 Cycle
• Amendments to PFRS 3, Business Combinations, and PFRS 11, Joint Arrangements,
Previously Held Interest in a Joint Operation
• Amendments to PAS 12, Income Tax Consequences of Payments on Financial Instruments
Classified as Equity
• Amendments to PAS 23, Borrowing Costs, Borrowing Costs Eligible for Capitalization
2.3 Financial instruments
Initial Recognition and Classification of Financial Instruments

Financial assets are measured at fair value through profit or loss (FVTPL) unless these are measured at
fair value through other comprehensive income (FVOCI) or at amortized cost. Financial liabilities are
classified as either financial liabilities at FVTPL or financial liabilities at amortized cost. The
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classification of financial assets depends on the contractual terms and the business model for managing
the financial assets. Subsequent to initial recognition, the Company may reclassify its financial assets
only when there is a change in its business model for managing these financial assets. Reclassification
of financial liabilities is not allowed.
The Company determines its business model at the level that best reflects how it manages groups of
financial assets to achieve its business objective. The Company’s business model is not assessed on an
instrument-by-instrument basis, but at a higher level of aggregated portfolios. As a second step of its
classification process, the Company assesses the contractual terms of financial assets to identify
whether they pass the contractual cash flows test (SPPI test).
The Company had no investment securities at FVTPL and FVOCI as at December 31, 2019 and 2018.
Financial assets at amortized cost

Financial assets at amortized cost are debt financial assets that meet both of the following conditions:
(i) these are held within a business model whose objective is to hold the financial assets in order to
collect contractual cash flows; and (ii) the contractual terms give rise on specified dates to cash flows
that are SPPI on the outstanding principal amount. This accounting policy mainly relates to the
statement of financial position captions ‘Cash’, ‘Receivables’, ‘Due from parent company’ and
refundable deposits under ‘Prepaid expenses and other current assets’, which arise primarily from
service revenues and other types of receivables.
After initial measurement, financial assets at amortized cost are subsequently measured at amortized
cost using the EIR method, less impairment in value. Amortized cost is calculated by taking into
account any discount or premium on acquisition and fees that are an integral part of the EIR. The
amortization is included in ‘Interest income’ in the statement of comprehensive income. Gains and
losses are recognized in statement of comprehensive income when these investments are derecognized
or impaired, as well as through the amortization process. The expected credit loss (ECL) are recognized
in the statement of comprehensive income under ‘Provision for credit losses’. The effects of revaluation
on foreign currency-denominated debt financial assets are recognized in the statement of
comprehensive income.
Financial liabilities at amortized cost

Financial liabilities at amortized cost are contractual obligations which are either to deliver cash or
another financial asset to another entity or to exchange financial assets or financial liabilities with
another entity under conditions that are potentially unfavourable to the Company. They are included
in current liabilities, except for maturities greater than 12 months after the reporting period which are
classified as non-current liabilities.
The Company’s financial liabilities at amortized cost consist of accounts payable, notes payable, due
to paying agents, accrued expenses (Note 2.12) and due to parent company.
The Company recognizes a financial liability in the statement of financial position when, and only
when, the Company becomes a party to the contractual provision of the instrument.
Other liabilities at amortized cost are initially measured at fair value plus transaction costs.
Subsequently, these are measured at amortized cost using the effective interest rate method.
Interest expense on financial liabilities is recognized at gross amount in profit or loss.
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Derecognition of Financial Instruments

Financial Assets
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 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 party under a ‘pass-through’ arrangement; or
· The 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 Company has transferred its rights to receive cash flows from an asset 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 Company’s continuing involvement in the asset.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
Company could be required to repay.
Financial Liabilities
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or
has expired.
Where 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 exchange or
modification is treated as a derecognition of the original liability and the recognition of a new liability,
and the difference in the respective carrying amounts is recognized in the parent company statement of
income.
2.4 Impairment of financial assets
The Company recognises an ECL for all debt instruments not held at fair value through profit or loss.
ECLs are based on the difference between the contractual cash flows due in accordance with the
contract and all the cash flows that the Company expects to receive, discounted at an approximation of
the original effective interest rate. The expected cash flows will include cash flows from the sale of
collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since initial recognition, a loss
allowance is required for credit losses expected over the remaining life of the exposure, irrespective of
the timing of the default (a lifetime ECL).
For receivables and contract assets, the Company applies a simplified approach in calculating ECLs.
Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance
based on lifetime ECLs at each reporting date. The Company has established a provision matrix that
is based on its historical credit loss experience, adjusted for forward-looking factors specific to the
debtors and the economic environment.
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The Company considers a financial asset in default when contractual payments are 90 days past due.
However, in certain cases, the Company may also consider a financial asset to be in default when
internal or external information indicates that the Company is unlikely to receive the outstanding
contractual amounts in full before taking into account any credit enhancements held by the Company.
A financial asset is written off when there is no reasonable expectation of recovering the contractual
cash flows.
2.5 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial
position when, and only when, the Company currently has a legally enforceable right to offset the
recognized amounts and it intends either to settle them on a net basis, or realize the asset and settle the
liability simultaneously. The Company assesses that it has a currently enforceable right of offset if the
right is not contingent on a future event, and is legally enforceable in the normal course of business,
event of default, and event of insolvency or bankruptcy of the Company and all of the counterparties.
2.6 Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.
The fair value of a non-financial asset is measured based on its highest and best use. The asset’s current
use is presumed to be its highest and best use.
The fair value of financial and non-financial liabilities takes into account non-performance risk, which
is the risk that the entity will not fulfil an obligation.
The Company classifies its fair value measurements using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. The fair value hierarchy has the following
levels:
§ Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
§ Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and
§ Level 3: inputs for the asset or liability that are not based on observable market data (that is,
unobservable inputs).
The appropriate level is determined on the basis of the lowest level input that is significant to the fair
value measurement.
The fair value of financial instruments traded in active markets is based on quoted market prices at the
reporting date. A market is regarded as active if quoted prices are readily and regularly available from
an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices
represent actual and regularly occurring market transactions on an arm’s length basis. The quoted
market price used for financial assets held by the Company is the most representative price within the
bid-ask spread. These instruments are included in Level 1.
The fair value of assets and liabilities that are not traded in an active market (for example, over-the-
counter derivatives) is determined by using valuation techniques. These valuation techniques maximize
the use of observable market data where it is available and rely as little as possible on entity specific
estimates. If all significant inputs required to fair value an instrument are observable, the asset or
liability is included in Level 2. If one or more of the significant inputs is not based on observable market
data, the asset or liability is included in Level 3.
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The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting
period during which the change has occurred.
‘Day 1’ Profit
When the transaction price in a non-active market is different from the fair value of other observable
current market transactions of the same instrument or based on a valuation technique whose variables
include only data from observable market, the Company recognizes the difference between the
transaction price and fair value (a ‘Day 1’ profit') in profit or loss. In cases where no observable data
is used, the difference between the transaction price and model value is only recognized in profit or
loss when the inputs become observable or when the instrument is derecognized. For each transaction,
the Company determines the appropriate method of recognizing the ‘Day 1’ profit amount.
As at December 31, 2019 and 2018, the Company has no assets and liabilities measured at fair value.
2.7 Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash
on hand and deposits held at call with financial institutions. Cash in banks earns interest at the respective
bank deposit rates.
2.8 Prepaid expenses and other current assets
Prepaid expenses are recognized in the event that payment has been made in advance of obtaining right
of access to goods or receipt of services and measured at nominal amounts. These are derecognized and
charged to profit or loss either with the passage of time or through use or consumption.
Prepaid expenses are included in current assets, except when the related goods or services are expected
to be received and rendered more than twelve months after the end of the reporting period, in which
case, these are classified as non-current assets.
Other current assets include input value-added tax (VAT) which is stated at historical cost less provision
for impairment, if any. Provision for unrecoverable input VAT, if any, is maintained by the Company
at a level considered adequate to provide for potential unutilized portions of the claims. The Company,
on a continuing basis, makes a review of the status of recoverability of its input VAT designed to
identify those that may require provision for impairment losses. These are derecognized when refunded,
used or offset against output tax or disallowed by the tax authority.
2.9 Property and equipment
Property and equipment are stated at historical cost less accumulated depreciation and impairment in
value, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the
items.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the Company and the cost of the item can be measured reliably. Major renovations are depreciated
over the remaining useful life of the related asset or to the date of the next major renovation, whichever
is sooner. Repairs and maintenance are charged to profit or loss during the financial period in which
they are incurred.
*SGVFS038813*
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Leasehold improvements are amortized over the estimated useful lives of the improvements, which is
the shorter period compared to the term of the lease considering renewal options and management’s
intention.
Depreciation on assets is computed using the straight-line method over the asset’s estimated useful
lives, as follows:
In years
Transportation equipment 5
Computer equipment 5
Office equipment 5
Furniture and fixtures 5
Leasehold improvements 3 or the lease term, whichever is shorter
The assets’ residual values and useful lives are reviewed periodically, and adjusted as appropriate, at
each reporting date. An asset’s carrying amount is written down immediately to its recoverable amount
if the asset’s carrying amount is greater than its estimated recoverable amount.
Fully depreciated assets are retained in the property and equipment account until these are retired.
Gains and losses on disposals are determined by comparing proceeds with carrying amount and these
are included in the statement of comprehensive income within “Other income, net”.
An item of property and equipment is derecognized upon disposal or when no future economic benefits
are expected from its use or disposal at which time the cost and their accumulated depreciation are
removed from the accounts.
Effective January 1, 2019, it is the Company’s policy to classify right-of-use assets as part of property
and equipment. Prior to that date, all of the Company’s leases are accounted for as operating leases in
accordance with PAS 17, hence, not recorded on the statement of financial position. The Company
recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset
is available for use). Right-of-use assets are initially measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The initial
cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs
incurred, lease payments made at or before the commencement date less any lease incentives received
and estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset,
restoring the site on which it is located or restoring the underlying asset to the condition required by
the terms and conditions of the lease, unless those costs are incurred to produce inventories.
Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease
term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of their
estimated useful life and lease term. Right-of-use assets are subject to impairment.
2.10 Impairment of non-financial assets
The carrying values of non-financial assets, such as property and equipment, are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost
to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash-generating units). Value in use
requires entities to make estimates of future cash flows to be derived from the particular asset, and
*SGVFS038813*
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discount them using a pre-tax market rate that reflects current assessments of the time value of money
and the risks specific to the asset. Impairment losses, if any, are recognized in the statement of
comprehensive income within other expenses.
Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at
each reporting date. When impairment loss subsequently reverses, the carrying amount of the assets or
cash-generating unit is increased to the revised estimate of its recoverable amount, but the increased
carrying amount should not exceed the carrying amount that would have been determined had no
impairment loss has been recognized for the asset or cash-generating unit in prior years. Reversals of
previously recorded impairment provisions are credited against provision account in the statement of
comprehensive income.
2.11 Refundable deposits
Refundable deposits (including surety bond) are amounts which are refundable upon expiry of a
specified term in a contract, subject to certain conditions such as the lessee's payment of rent as it
becomes due. If part or all of a refundable deposit becomes non-refundable, e.g. where no refund will
be paid due to damage to the property by the lessee or a loss has been incurred, the right to receive the
deposit or part thereof is impaired, and the carrying amount is reduced and the corresponding loss is
recognized in the statement of comprehensive income within general and administrative expenses.
Also refer to Note 2.3 for the recognition, measurement and derecognition of financial assets.
2.12 Accounts payable and other accrued expenses
These amounts represent liabilities for goods and services provided to the Company prior to the end of
financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition. Trade and other payables are presented as current liabilities unless payment is not due
within 12 months after the reporting period. They are recognized initially at their fair value and
subsequently measured at amortized cost using the effective interest method.
Accounts payable and other accrued expenses denominated in foreign currency are translated to
Philippine peso using the exchange rate at the reporting date. Foreign exchange gains or losses are
included in “Other income, net” in the statement of comprehensive income.
Accounts payable and other accrued expenses are derecognized when extinguished, that is, when the
obligation specified in a contract is discharged or cancelled or when the obligation expires.
2.13 Lease liability
At the commencement date of the lease, the Company recognizes lease liabilities measured at the
present value of lease payments to be made over the lease term. The lease payments include fixed
payments (including in-substance fixed payments) less any lease incentives receivable, variable lease
payments that depend on an index or a rate, and amounts expected to be paid under residual value
guarantees. The lease payments also include the exercise price of a purchase option reasonably
certain to be exercised by the Company and payments of penalties for terminating the lease, if the
lease term reflects the Company exercising the option to terminate. Variable lease payments that do
not depend on an index or a rate are recognized as expenses in the period in which the event or
condition that triggers the payment occurs.
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In calculating the present value of lease payments, the Company uses its incremental borrowing rate
at the lease commencement date because the interest rate implicit in the lease is not readily
determinable. After the commencement date, the amount of lease liabilities is increased to reflect the
accretion of interest and reduced for the lease payments made. In addition, the carrying amount of
lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the
lease payments (e.g., changes to future payments resulting from a change in an index or rate used to
determine such lease payments) or a change in the assessment of an option to purchase the underlying
asset.
2.14 Provisions
Provisions for legal claims and other losses are recognized when the Company has a present legal or
constructive obligation as a result of past events, it is probable that an outflow of resources will be
required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized
for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognized
even if the likelihood of an outflow with respect to any one item included in the same class of
obligations may be small.
Provisions are measured at the present value of management’s best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. The discount rate used to determine
the present value is a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the liability. The increase in the provision due to the passage of time is
recognized as interest expense.
Provisions and reversal of provisions are recognized under “Other income, net”.
2.15 Retirement liability
The Company has yet to adopt a formal retirement plan for the benefit of its qualified employees. Under
Republic Act (RA) 7641, otherwise known as the Retirement Pay Law, in the absence of a retirement
plan or agreement providing for retirement benefits of employees in the private sector, an employee
upon reaching the age of 60 years or more, but not beyond 65 years, who has served at least 5 years in
a private company, may retire and shall be entitled to retirement pay equivalent to at least ½ month
salary for every year of service, a fraction of at least 6 months being considered as 1 whole year.
The Company recognizes retirement benefit provision based on the minimum requirements of
RA 7641. The liability recognized in the statement of financial position is the present value of the
accumulated retirement benefit obligation at the financial reporting date as 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 of high-quality corporate bonds that are denominated in the currency
in which the benefits will be paid, and that have terms approximating to the terms of the related
obligation. Where there is no deep market in such bonds, the market rates on government bonds are
used.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the
profit or loss.
*SGVFS038813*
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Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognized in the period in which they occur, directly in other comprehensive income.
Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognized immediately in profit or loss as past service costs.
2.16 Equity
Capital Stock
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of shares
are recognized as a deduction from equity, net of any tax effect.
Retained earnings
Retained earnings represent the accumulated profit/loss arising from the operations of the Company,
less any dividends declared.
2.17 Revenue recognition
Revenue from contracts with customers is recognized upon transfer of services to the customer at an
amount that reflects the consideration to which the Company expects to be entitled in exchange for
those services.
Service fee income

Service fee income is recognized in the statement of comprehensive income as they are earned. The
revenue equivalent to a fixed amount that shall be determined as a function of expenses that the
Company incurs plus a ten percent (10%) mark up.
Commission income
Commission income is recognized upon reimbursement from UFSI of the commission fees of the
paying agents. The revenue is equivalent to the commission expense paid to the paying agents.
Interest income
Interest income is recognized as it accrues using the effective interest method and is presented net of
final tax.
2.18 Cost and expense recognition
Cost and expenses are recognized when decrease in future economic benefits related to a decrease in
an asset or an increase of a liability has arisen that can be measured reliably. Expenses are recognized
when they are incurred.
2.19 Operating leases
Policies applicable prior to January 1, 2019

A lease is classified as an operating lease if it does not substantially transfer all risks and rewards
incidental to ownership. Operating lease payments are recognized as expense in profit or loss on a
straight-line basis over the lease term. Associated costs, such as maintenance and insurance are
expensed as incurred.
*SGVFS038813*
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Policies applicable beginning January 1, 2019

The Company recognized right-of-use assets and lease liabilities for those leases previously classified
as operating leases, except for short-term leases and leases of low-value assets. The right-of-use assets
for all leases were recognized based on the carrying amount as if the standard had always been applied,
apart from the use of incremental borrowing rate at the date of initial application. Lease liabilities were
recognized based on the present value of the remaining lease payments, discounted using the
incremental borrowing rate at the date of initial application.
2.20 Foreign currency transactions and translations
Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic
environment in which the entity operates (the “functional currency”). The financial statements are
presented in Philippine Peso, which is the Company’s functional and presentation currency.
Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in foreign
currencies at year end exchange rates are recognized in profit or loss.
Foreign exchange gains and losses are presented in profit or loss within “Other income, net”.
2.21 Current and deferred income tax
The income tax expense or credit for the period is the tax payable on the current period’s taxable income
based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the end of the reporting period. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
Deferred income tax is provided in full, using the liability method, on all temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially
enacted by the end of the reporting period and are expected to apply when the related deferred income
tax asset is realized or the deferred income tax liability is settled.
Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to
utilize those temporary differences and losses. Deferred tax assets are recognized for all deductible
temporary differences, carry-forward of unused tax losses (net operating loss carryover or NOLCO)
and unused tax credits (excess minimum corporate income tax or MCIT) to the extent that it is probable
that future taxable profit will be available against which the temporary differences, unused tax losses
and unused tax credits can be utilized. The Company reassesses at each reporting date the need to
recognize a previously unrecognized deferred income tax asset.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.
*SGVFS038813*
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Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset
and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised
in other comprehensive income or directly in equity, respectively.
2.22 Contingencies
Contingent liabilities are not recognized in the financial statements. They are disclosed in the notes to
the financial statements unless the possibility of an outflow of resources embodying economic benefits
is remote. Contingent assets are not recognized in the financial statements but are disclosed in the notes
to the financial statements when an inflow of economic benefits is probable.
2.23 Events after reporting date
Post period-end events that provide additional information about the Company’s financial position at
the end of the reporting date (adjusting events) are reflected in the financial statements. Post period-
end events that are not adjusting events are disclosed in the notes to the financial statements when
material.
2.24 Future Changes in Accounting Policies
Pronouncements issued but not yet effective are listed below. The Company intends to adopt the
following pronouncements when they become effective. Adoption of these pronouncements is not
expected to have a significant impact on the Company’s financial statements unless otherwise indicated.
Effective beginning on or after January 1, 2020

· Amendments to PFRS 3, Definition of a Business
· Amendments to PAS 1, Presentation of Financial Statements, and PAS 8, Accounting Policies,
Changes in Accounting Estimates and Errors, Definition of Material
Effective beginning on or after January 1, 2021

· PFRS 17, Insurance Contracts
Deferred effectivity
· Amendments to PFRS 10, Consolidated Financial Statements, and PAS 28, Sale or Contribution
of Assets between an Investor and its Associate or Joint Venture
3. Critical Accounting Estimates, Assumptions and Judgments
Estimates, assumptions and judgments 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.
The Company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates, assumptions and
judgments that have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are discussed below:
*SGVFS038813*
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3.1 Critical accounting estimates and assumptions
Retirement benefit obligation (Note 12)

The present value of the pension obligation depends on a number of factors that are determined on an
actuarial basis using a number of assumptions. The assumptions used in determining the net cost
(income) for pensions include the discount rate and future salary increases. Any changes in these
assumptions will impact the carrying amount of retirement obligations.
The Company determines the appropriate discount rate at the end of each year. This is the interest rate
that should be used to determine the present value of estimated future cash outflows expected to be
required to settle the pension obligations. In determining the appropriate discount rate, the Company
considers the interest rates of government bonds that are denominated in the currency in which the
benefits will be paid and that have terms to maturity approximating the terms of the related retirement
obligation.
Other key assumptions for pension obligations are based in part on current market conditions.
The possible effects of sensitivities surrounding these actuarial assumptions at reporting date are
presented in Note 12.
Leases - Estimating the incremental borrowing rate (Note 11)

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the
Company would have to pay to borrow over a similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic
environment. The IBR therefore reflects what the Company ‘would have to pay’, which requires
estimation when no observable rates are available or when they need to be adjusted to reflect the terms
and conditions of the lease. The Company estimates the IBR using observable inputs (such as market
interest rates) when available and is required to make certain entity-specific estimates.
The Company’s lease liabilities amounted to P

=3,238,462 as at December 31, 2019.
3.2 Critical judgments in applying the entity’s accounting policies
Provision for income tax and deferred tax (Note 13)

Significant judgment is required in determining the recorded provision for income tax in the statement
of comprehensive income. There are many transactions and calculations for which the ultimate tax
determination is uncertain in the ordinary course of business. The Company recognizes liabilities for
anticipated tax audit issues when it is probable. The liabilities are based on assessment and judgment
of whether additional taxes will be due. Where the final tax outcome of these matters is different from
the amounts that were initially recorded, such differences will impact the Company’s current income
tax and deferred income tax provisions in the period in which such determination is made.
Further, the recognition of deferred tax assets depends on management’s assessment of the probability
of available future taxable income against which the temporary differences can be applied. The
Company reviews the carrying amounts of deferred tax assets at the end of each reporting period and
reduces the amounts to the extent that it is no longer probable that sufficient taxable profit will allow
all or part of its deferred tax assets to be utilized. The Company’s management believes that the deferred
tax assets at the end of each reporting period will be realized.
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The Company has deferred tax assets of P=1,909,059 and P

=3,506,752 as at December 31, 2019 and 2018,
respectively, which was assessed by management to be fully recoverable based on projected taxable
profits and expected timing of reversal of the temporary differences. The Company’s unrecognized
deferred tax assets amounted to nil and P
=3,516,612 as of December 31, 2019 and 2018, respectively.
Provisions and Contingencies (Note 8)

In accordance with PAS 37, Provisions, Contingent Liabilities and Contingent Assets, the Company
determines whether to provide for loss contingencies based on an assessment of whether the risk of loss
is remote, reasonably possible or probable. Management’s assessment is developed in consultation
with the Company’s outside counsels and advisors and is based on an analysis of possible outcomes
under various circumstances. Contingency assumptions involve judgments that are inherently
subjective and can involve matters that are in litigation, appeal and ongoing negotiations with
authorities and third parties which by its nature is unpredictable. Management believes that its
assessment of the probability of contingencies is reasonable, but because of the subjectivity involved
and the unpredictable nature of the subject matter at issue, management’s assessment may prove
ultimately to be incorrect, which could materially impact the financial statements in current or future
periods.
The Company recognized provision for losses of nil and =

P19,884,852 as at December 31, 2019 and
2018, respectively.
4. Cash
Cash as at December 31 consists of:
Note 2019 2018

Cash in banks 16 P
=165,322,457 =101,027,825
P
Petty cash fund 10,000 10,000
P
=165,332,457 =101,037,825
P
Cash in banks earn interest at the prevailing bank deposit rates. For the years ended December 31,
2019 and 2018, the Company has not provided any allowance for impairment since the expected loss
is very minimal.
Interest income on cash in banks for the years ended December 31, 2019 and 2018 amounted to
=173,973 and P
P =137,848 (Note 14), respectively, and is presented under ‘Other income, net’ in the
statements of comprehensive income.
5. Receivables
Receivables mainly pertain to advances made by the Company to paying agents for cash remittances to
beneficiaries amounting to = P14,523,352 and =P29,255,723 as at December 31, 2019 and 2018,
respectively.
For the years ended December 31, 2019 and 2018, the Company has not provided any allowance for
impairment since the expected loss is very minimal. There has not been a significant change in credit
quality and the receivables are considered fully recoverable taking into account the paying agents’
historical payment patterns and their financial condition. The Company holds no collateral with respect
to receivables.
*SGVFS038813*
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6. Prepaid Expenses and Other Assets
Prepaid expenses and other current assets as at December 31 consist of:
Note 2019 2018

Prepaid tax P
=1,583,281 =2,346,721
P
Prepaid insurance 1,098,919 993,856
Refundable deposits 11 268,292 315,359
Prepaid others 7,765 –
P
=2,958,257 =3,655,936
P
Other noncurrent assets as at December 31 consists of:
Note 2019 2018

Input VAT P
=2,880,316 =4,142,783
P
Refundable deposits 11 1,006,915 1,006,915
Prepaid rent 196,007 928,454
P
=4,083,238 =6,078,152
P
In 2019, the Company has written off input VAT amounting to =

P2,793,077.
7. Property and Equipment
The movements for each category of property and equipment are as follows:
2019
Transportation Computer Office Furniture Leasehold Right of Use
Equipment Equipment Equipment and Fixtures Improvements Assets Total
Cost
At beginning of year, as previously
reported = 2,538,765
P = 3,469,554
P = 945,426
P = 132,168
P = 1,462,045
P =–
P = 8,547,958
P
Effect of adoption of PFRS 16 (Note 2) – – – – – 6,362,753 6,362,753
At beginning of year, as restated 2,538,765 3,469,554 945,426 132,168 1,462,045 6,362,753 14,910,711
Additions – 366,598 32,232 – 97,774 49,535 546,139
Disposals (1,226,786) – – – – – (1,226,786)
Balance at end of year 1,311,979 3,836,152 977,658 132,168 1,559,819 6,412,288 14,230,064
Accumulated Depreciation and
Amortization
Balance at beginning of year 1,864,032 2,689,789 687,050 72,872 736,701 − 6,050,444
Depreciation and amortization 122,679 332,214 128,342 12,199 487,729 2,674,142 3,757,305
Disposals (674,732) – – – – – (674,732)
Balance at end of year 1,311,979 3,022,003 815,392 85,071 1,224,430 2,674,142 9,133,017
Net Book Value =–
P = 814,149
P = 162,266
P = 47,097
P = 335,389
P = 3,738,146
P = 5,097,047
P
2018
Transportation Computer Office Furniture Leasehold
Equipment Equipment Equipment and Fixtures Improvements Total
Cost
Balance at beginning of year =2,538,765
P =3,330,270
P =945,426
P =132,168
P =1,462,045
P =8,408,674
P
Additions – 139,284 – – – 139,284
Balance at end of year 2,538,765 3,469,554 945,426 132,168 1,462,045 8,547,958
Accumulated Depreciation and
Amortization
Balance at beginning of year 1,618,675 2,431,559 556,008 52,440 260,242 4,918,924
Depreciation and amortization 245,357 258,230 131,042 20,432 476,459 1,131,520
Balance at end of year 1,864,032 2,689,789 687,050 72,872 736,701 6,050,444
Net Book Value =674,733
P =779,765
P =258,376
P =59,296
P =725,344
P =2,497,514
P
*SGVFS038813*
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Certain fully-depreciated property and equipment with cost of P

=3,820,462 as at December 31, 2019 and
2018 are still in use.
In 2016, the Company purchased a transportation equipment amounting to =P1,226,786, to be paid in an

installment basis. Payments made in 2019 and 2018 amounted to P
=261,612 and P=432,421, respectively.
The transportation equipment was disposed in June 2019 with a loss of =
P105,625, recorded in “Other
income, net” in the statement of comprehensive income (Note 14).
8. Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses as at December 31 consist of:
Note 2019 2018

Financial liabilities:
Due to paying agents P
=6,376,194 =5,495,024
P
Accounts payable 178,870 7,613
Accrued expenses:
Accrued salaries 1,062,290 887,647
Accrued professional fees 667,392 1,195,785
Other accrued expenses 49,047 1,430,073
8,333,793 9,016,142
Non-financial liabilities:
Payable to regulatory agencies 323,812 447,173
Provision for losses 14 – 19,884,852
Deferred rent – 79,351
323,812 20,411,376
P
=8,657,605 =29,427,518
P
Due to paying agents pertains to advances made by banks for the cash remitted to beneficiaries.
Provision for losses pertains to an ongoing case wherein the Company has a pending application for
compromise. No specific disclosure on such unsettled claim is made because any such specific
disclosures would prejudice the Company’s position with the other parties with whom it is in dispute.
Such exemption from disclosures is allowed under PAS 37, Provisions, Contingent Liabilities and
Contingent Assets. In 2019, the Company settled the claim.
Other accrued expenses pertain to accruals for marketing and utilities.
9. Related Party Transactions
In the normal course of business, the Company’s only related party transactions are with its
immediate parent, UFSI.
*SGVFS038813*
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Significant related party transactions for the years ended December 31 are as follows:
Related party Terms and Conditions 2019 2018

(A) Service fee The Company has a service agreement with UFSI to provide
Immediate parent: administrative, financial, and accounting services in the
UFSI nature of those services required by the latter, including the P
=38,172,003 =40,655,355
P
processing and transfer of information, and representing or
serving as a commission agent in the Philippines or in a
foreign territory, for every kind of industrial or commercial
dealing, whether national or foreign.
The Company adds reasonable arm’s length margin to the

total costs and expenses on the said services.
Unless otherwise agreed to in writing by the parties, the

service fee is due on a monthly basis in arrears within thirty
(30) days following the billing date.
(B) Commission Commission income pertains to the amount reimbursed by

Immediate parent: UFSI representing the amount of commission expenses
UFSI incurred and paid by the Company to the paying agents. 3,469,117 3,398,969
(C) Reimbursements The remittance payments to beneficiaries made under the

Immediate parent: Company’s account through its paying agents are reimbursed
UFSI to UFSI. – 51,618,716
Reimbursements are pass-through transactions that are settled

through the subsequent inward funding remittance by UFSI
to the Company.
(D) Advances UFSI advances cash to the Company to pre-fund

Immediate parent: reimbursements to beneficiaries in periods where there are no
UFSI banking transactions due to weekends and holidays. 51,817,764 52,067,870
The advances from UFSI are pass-through transactions that

are settled through subsequent deduction from the inward
funding remittances by UFSI to the Company.
At December 31, outstanding balances are summarized as follows:
Related party Terms and Conditions Ref. 2019 2018

Due from immediate Due from immediate parent are collected in cash on
parent: UFSI a net basis.
These are unsecured and non-interest bearing and A, B, C P

=− =62,169,829
P
have no fixed repayment term, due on demand but
not later than 12 months. No provisions were set up
for these receivables, as these are deemed fully
collectible.
Due to immediate Due to immediate parent are settled in cash on a net
parent: UFSI - basis.
current
These are unsecured and non-interest bearing and
have no fixed repayment term, due on demand but A, D, C 137,735,415 138,797,900
not later than 12 months.
Due to immediate These are advances from UFSI that was intended
parent: UFSI- for the additional capital infusion to the Company D − 10,268,000
noncurrent
*SGVFS038813*
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There are no guarantees issued and collaterals held with respect to transactions and balances with
related parties.
Key management compensation for the years ended December 31 consists of:
Note 2019 2018

Short-term employee benefits P
=1,232,846 =2,980,039
P
P
=1,489,998 =3,555,095
P
The Company has not provided termination benefits or other long-term benefits, other than retirement
benefits, to its key management employees for the years ended December 31, 2019 and 2018.
10. Capital Stock
Details of share capital as at December 31, 2019 and 2018 follow:
2019 2018
Shares Amount Shares Amount
Common stock- P
=100 per share
Authorized 300,000 P
=30,000,000 300,000 =30,000,000
P
Issued and outstanding at beginning

of year 78,000 P
=7,800,000 78,000 =7,800,000
P
Issuance of new shares 102,680 10,268,000 − −
Issued and outstanding at end of year 180,680 P
=18,068,000 78,000 =7,800,000
P
On August 22, 2018, the BOD approved the issuance of 102,680 common shares with par value of
=100 per share from its unissued portion of authorized capital stock in consideration of the advances
P
from the Parent Company amounting to = P10,268,000. On December 20, 2018, the Company submitted
the requirements to SEC for evaluation. SEC approval was issued on May 21, 2019.
11. Operating Lease Commitment
On June 8, 2018, the Company has entered into a non-cancellable lease agreement with a third-party
lessor for the rental of its administrative office. The lease agreement runs for a period of three (3) years
from June 1, 2018 up to May 31, 2021. The lease agreement is renewable upon terms and conditions
mutually agreed by the contracting parties. As at December 31, 2019 and 2018, security deposit
amounting to P =1,006,915 is presented as “Other Noncurrent Assets’ (Note 6).
Rental expense recognized in the statement of comprehensive income amounted to P

=2,591,101 in 2018.
*SGVFS038813*
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Upon adoption of PFRS 16, the Company applied a single recognition and measurement approach for
all leases. Set-out below are the carrying amount of lease liabilities and the movements during the
period:
Note
At beginning of year, as previously reported =–
P
Effect of adoption of PFRS 16 2 5,704,532
At beginning of year, as restated 5,704,532
Additions 36,935
Accretion of interest 14 288,845
Payments (2,791,850)
At end of year =3,238,462
P
Current =2,994,030
P
Non-current 244,432
=3,238,462
P
The following are the amounts recognized in the statement of comprehensive income:
Note 2019
Depreciation expense of right-of-use assets included in property
and equipment 7 =2,674,142
P
Interest expense on lease liabilities 14 288,845
=3,238,462
P
Shown below is the maturity analysis of the undiscounted lease payments:
2019 2018
Within one (1) year P
=2,891,753 =2,754,050
P
After one (1) year but not more than five (5) years 491,715 3,383,468
P
=3,383,468 =6,137,518
P
12. Retirement Liability
The Company has yet to adopt a formal retirement plan. The Company’s basis of provision for
retirement benefits cost and obligation is discussed in Note 2.15.
The amounts recognized in the statements of financial position as at December 31 as retirement

liability are determined as follows:
2019 2018
Present value of defined benefit obligation P
=1,339,425 =4,574,265
P
Fair value of plan assets – –
Liability in the statement of financial position P
=1,339,425 =4,574,265
P
*SGVFS038813*
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The movements in the present value of retirement liability for the years ended December 31 follow:
2019 2018
Beginning of the year P
=4,574,265 =4,380,426
P
Benefits paid (4,593,400) –
Included in profit or loss:
Current service cost 367,814 454,680
Interest cost 431,353 237,419
799,167 692,099
Included in other comprehensive income:
Remeasurement loss (gain) on experience
adjustment (206,379) 11,136
Remeasurement loss (gain) on change in financial
assumptions 765,772 (509,396)
559,393 (498,260)
End of the year P
=1,339,425 =4,574,265
P
As of December 31, 2019, and 2018, remeasurement loss presented in the statement of financial
position as ‘Reserve for remeasurement of retirement benefit obligation’ amounted to
=870,265 and P
P =478,690, respectively.
The movement in remeasurement gain (loss) of (P =391,575) and P

=348,782 in 2019 and 2018,
respectively, is presented net of deferred income tax of (P
=167,818) and P
=149,478 in 2019 and 2018
(Note 13), respectively, in the statement of total comprehensive income.
The principal actuarial assumptions used at December 31 are as follows:
2019 2018
Discount rate 5.24% 9.43%
Future salary increase rate 5.00% 4.00%
Discount rate
The discount rate is determined by reference to yields on long-term Philippine Treasury Bonds and
adjusted to reflect the term similar to the estimated term of the benefit obligation as determined by the
actuary as at the end of the reporting period as there is no deep market in high quality corporate bonds
in the Philippines.
Future salary increases

This is the expected long-term average rate of salary increase taking into account inflation, seniority,
promotion and other market factors. Salary increases comprise of the general inflationary increases
plus a further increase for individual productivity, merit and promotion. The future salary increase
rates are set by reference over the period over which benefits are expected to be paid.
Demographic assumptions
Assumptions regarding mortality experience are set based on advice from published statistics and
experience in the Philippines.
*SGVFS038813*
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The sensitivity of the defined benefit obligations to changes in the significant actuarial assumptions at
December 31 follows:
2019
Impact on defined benefit obligation
Changes in Increase in Decrease in
assumptions assumption assumption
Discount rate 1.00% Decrease by P
=221,648 Increase by P = 281,211
Salary increase rate 1.00% Increase by P
=278,944 Decrease by P =223,911
2018
Impact on defined benefit obligation
Changes in Increase in Decrease in
assumptions assumption assumption
Discount rate 1.00% Decrease by P
=79,546 Increase by =P94,315
Salary increase rate 1.00% Increase by =
P90,650 Decrease by P =77,686
The above sensitivity analyses are based on a change in an assumption while holding all other
assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions
may be correlated. When calculating the sensitivity of the defined benefit obligation to significant
actuarial assumptions the same method (present value of the defined benefit obligation calculated with
the projected unit credit method at the end of the reporting period) has been applied as when calculating
the retirement benefit obligation recognized in the statement of financial position.
The weighted average duration of the defined benefit obligation is 18.8 years and 1.9 years in 2019 and
2018, respectively.
Shown below is the maturity analysis of undiscounted benefit payments as at December 31:
2019 2018
Year 1 P
=18,357 =3,830,599
P
Year 2 25,160 34,176
Year 3 39,525 40,965
Year 4 59,141 47,443
Year 5 94,492 68,470
Year 6-10 978,837 593,451
13. Taxation
Republic Act (RA) No. 9337, An Act Amending Internal Revenue Code, provides that the regular
corporate income tax rate shall be 30.0%.
The regulations also provide for MCIT of 2.0% on modified gross income and allow NOLCO. The
carryforward of unused tax credits from excess of MCIT over regular minimum corporate income tax
(RCIT) and unused NOLCO may be applied against the Company’s income tax liability and taxable
income, respectively, over a three-year period from the year of inception.
*SGVFS038813*
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The components of income tax expense shown in profit or loss for the years ended December 31 are
as follows:
2019 2018
Current P
=763,440 =3,057,293
P
Deferred 1,765,511 213,506
P
=2,528,951 =3,270,799
P
Deferred income tax (DIT) assets and liability are determined using income tax rates in the period the
temporary differences are expected to be recovered or settled.
DIT assets and liability as at December 31 consist of the tax effects of the following:
2019 2018
DTA on:
MCIT P
=763,440 =–
P
NOLCO 634,854 –
Retirement benefit obligation 401,828 960,192
Leases 50,081 −
Unrealized foreign exchange loss 29,142 −
Accrued expenses 29,714 −
Provision for losses – 2,884,736
1,909,059 3,844,928
DIT liability on:
Unrealized foreign exchange gain – (338,176)
DIT assets, net P
=1,909,059 =3,506,752
P
The expected timing of recovery/settlement of the Company’s DIT assets and liabilities are as
follows:
2019 2018
DIT assets
To be recovered within 12 months P
=822,296 =2,884,736
P
To be recovered more than 12 months 1,086,763 960,192
1,909,059 3,844,928
DIT liability
To be recovered within 12 months – 338,176
DIT assets, net P
=1,909,059 =3,506,752
P
The movements in the Company’s net DIT assets (liabilities) are as follows:
2019 2018
Beginning of the year P
=3,506,752 =3,869,736
P
Charged to profit or loss (1,765,511) (213,506)
Charged to other comprehensive income 167,818 (149,478)
End of the year P
=1,909,059 =3,506,752
P
Realization of the future tax benefits related to the DIT assets is dependent on many factors including
the Company’s ability to generate taxable income during the periods in which the DIT assets are
expected to be recovered. Management has considered these factors in reaching its conclusion to
recognize in full the related future tax benefits from the above DIT assets.
*SGVFS038813*
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In 2018, the Company did not recognize deferred tax assets on the following temporary differences
since management believes that it will not be able to realize the tax benefit in the future:
Provision for losses =10,269,068

P
Accrued retirement cost 1,373,621
Deferred rent 79,351
=11,722,040
P
The reconciliation between income taxes computed at the statutory tax rate and the income tax
expense as shown in profit or loss for the years ended December 31 follows:
2019 2018
Income tax expense computed at statutory rate of 30% P
=3,135,295 =2,251,424
P
Adjustments for:
Movements in unrecognized deferred tax (3,516,612) 1,134,903
Non-deductible expenses 3,063,326 15,768
Interest income subjected to final tax (52,192) (41,355)
Interest expense limitation – 4,949
Others (70,866) (94,890)
P
=2,558,951 =3,270,799
P
As at December 31, 2019, the carryover NOLCO that can be claimed as deduction against future
taxable income follows:
Year Incurred Amount Expired Balance Expiry Year

2019 =2,116,180
P =–
P =2,116,180
P 2022
As at December 31, 2019, carryover MCIT can be used as a tax credit against future income tax
liability:
Year Incurred Amount Used Balance Expiry Year

2019 P763,440
= =–
P =763,440
P 2022
14. Other Income, Net
Other income, net for the years ended December 31 consist of:
Note 2019 2018

Provision for (reversal of) losses, net 8 (P
=10,357,279) =3,273,095
P
Foreign exchange loss (gain), net 15 3,564,038 (4,665,320)
Interest expense 11 288,845 16,496
Interest income 4 (173,973) (137,848)
Loss on sale 7 105,625 −
Miscellaneous 81,159 176
(P
=6,491,585) (P
=1,513,401)
*SGVFS038813*
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15. Foreign Currency Denominated Monetary Assets and Liabilities
The Company’s foreign currency denominated monetary assets and liabilities as at December 31 are
as follows:
2019 2018
In USD
Assets:
Cash in bank $253,111 $185,393
Receivables 10,736 −
Due from parent company − 8,938
Liabilities
Due to related party (2,714,533) (987,555)
Net foreign currency denominated liabilities ($2,450,686) ($793,224)
Exchange rates at December 31 P
=50.74 =52.72
P
Peso equivalent (P
=124,347,808) (P
=41,818,769)
Foreign exchange loss (gain), net, presented in ‘Other income, net’ in the statements of comprehensive
income for the years ended December 31, 2019 and 2018 amounted to = P3,564,038 and (P =4,655,320),
respectively, of which =
P97,140 and (P =711,685) pertains to unrealized foreign exchange loss (gain) as
at December 31, 2019 and 2018, respectively (Note 14).
16. Financial Instruments and Risk Management
16.1 Financial risk factors
The Company’s ultimate parent company provides written principles for over-all risk management, as
well as written policies covering specific areas, such as foreign exchange risk, interest-rate risk, credit
risk, use of non-derivative financial instruments, and investing excess liquidity.
The Company’s activities expose it to a variety of financial risks and these activities involve the
analysis, evaluation and management of some degree of risk or combination of risks. The Company’s
overall risk management program focuses on the unpredictability of financial markets, aims to achieve
an appropriate balance between risk and return and seeks to minimize potential adverse effects on the
Company’s financial performance.
The most important types of risk the Company manages are: credit risk, market risk and liquidity risk.
Market risk includes foreign exchange risk.
16.2 Components of financial assets and liabilities
Financial assets
Details of the Company’s financial assets as at December 31 are as follows:
Note 2019 2018

Cash in bank 4 P
=165,322,457 =101,027,825
P
Receivables 5 14,523,352 29,255,723
Due from parent company 9 – 62,169,829
Refundable deposits 6 1,275,207 1,322,274
P
=181,121,016 =193,775,651
P
*SGVFS038813*
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Financial liabilities
Details of the Company’s financial liabilities classified as liabilities at amortized cost as at
December 31 are as follows:
Note 2019 2018

Accounts payable and accrued expenses 8 P
=8,333,793 =9,016,142
P
Due to parent company 9 137,735,415 138,797,900
P
=146,069,208 =147,814,042
P
16.3 Fair value measurement
As of December 31, 2019 and 2018, the carrying values of the Company’s financial assets and liabilities
as reflected in the statements of financial condition and related notes approximate their respective fair
values as of the statement of financial condition date.
16.4 Credit risk
Credit risk is the risk of financial loss to the Company if counterparty to a financial instrument fails to
meet its contractual obligations and arises from the Company’s cash and due from parent company.
The Company has established controls in its credit policy to determine and monitor the credit
worthiness of customers and counterparties. The Company’s exposure to credit risk is not considered
significant because the counterparty of its financial assets has good credit standing. The Company’s
maximum exposure to credit risk is represented by the carrying amount of each financial asset.
The Company’s exposure to credit risk arises mainly from Cash in banks (Note 4), Receivables
(Note 5), Due from parent company (Note 9) and Refundable deposits (Note 6).
The carrying amount of financial assets represents the Company’s maximum credit exposure.
Collateral and other credit enhancement
The Company’s exposure to credit risk arising from default of the counterparty has a maximum
exposure equal to the carrying amount of the particular instrument plus any irrevocable loan
commitment or credit facility.
There are no significant concentrations of credit risk within the Company.
16.5 Credit quality of the Company’s financial assets
The Company utilizes an internal credit rating system based on its assessment of the quality of its
financial assets. The Company classifies its financial assets into the following credit grades:
· High Grade – This pertains to accounts with a very low probability of default as demonstrated by
the debtor’s long history of stability, profitability and diversity. The debtor has the ability to raise
substantial amounts of funds through public markets or external financing. The debtor has a strong
debt service record and a moderate use of leverage.
· Medium Grade – The debtor has no history of default. The debtor has sufficient liquidity to fully
service its debt over the medium term. The debtor has adequate capital to readily absorb any
potential losses from its operations and any foreseeable contingencies. The debtor reported
profitable operations for at least the past three years.
*SGVFS038813*
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· Low Grade – The borrower is expected to adjust to the cyclical downturns in its operations. Any
prolonged adverse economic conditions would however ostensibly create profitability and liquidity
losses. Operating performance may have a history of default in interest but must have regularized
its service record to date. The use of leverage is above industry standards but has contributed to
shareholder value.
As at the end of reporting period, credit quality of the Company’s Cash in bank, Receivables, Due from
Parent company and Refundable deposits that are neither past due nor impaired were determined to be
high grade and are in stage 1 of the ECL model.
Cash in bank
Credit risk exposure arising from cash in bank arises from default of the counter party, with a maximum
exposure equal to the fair value of financial assets. The Company has policies that limit the amount of
credit exposure with financial institutions.
To reduce the credit risk, the Company has concentrated its banking activities with a limited company
of universal banks that have good financial ratings. Individual risk limits on per bank basis are set
based on its financial position, credit ratings, past experience and other factors in accordance with those
set by the BOD. The utilization of credit limits with each bank is regularly monitored.
Receivables
Receivables mainly pertain to advances made by the Company to a paying agent for cash remittances
to beneficiaries which are readily collectable by the Company, with the counterparty in good credit
standing. Thus, the Company is not expecting any significant exposure on these balances.
Due from Parent Company

The Company’s exposure to credit risk arising mainly from related party transactions pertain to service
fees, and reimbursements. The Company and its parent company are required to perform periodic
confirmations and reconciliations to adopt uniform accounting policies across all regions. The
Company has no historical default rates in relation to its due from a related party. Thus, the Company
is not expecting significant exposure on these balances.
Refundable Deposits
Credit risk on refundable deposits pertains to deposits for the Company’s existing non-cancellable lease
agreements for a period of more than twelve months from reporting date. The Company limits its
exposure to credit risk by transacting only with counterparty that has appropriate and acceptable credit
history.
Refundable deposits on leased properties by the Company are normally refundable at the end of the
lease term (Note 11).
16.6 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, will affect the
Company’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while
optimizing the return.
Foreign Exchange Risk

The Company’s activities expose it primarily to the financial risks of changes in foreign currency
exchange rates, to the extent of its monetary foreign currency denominated assets and liabilities,
primarily with respect to the U.S. dollars.
*SGVFS038813*
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The reasonable possible change in foreign exchange rate used in the sensitivity analysis is the rate of
change in U.S. dollars between the Peso equivalent at year end and the Peso equivalent determined
sixty (30) days from reporting date, by which management is expected to receive or settle the
Company’s most significant financial assets or liabilities, respectively.
Closing rate thirty

Closing rate at (30) days after Change in foreign
reporting date reporting date exchange rate in
(Peso equivalent) (Peso equivalent) absolute %
December 31, 2019 50.74 50.90 0.32%
December 31, 2018 52.72 52.35 -0.71%
Reasonable possible change in foreign currency exchange rate determined above would lead to the
following pre-tax (loss) profit and equity movements for the years ended December 31 as follows:
2019
Foreign currency
Foreign currency exchange rate
exchange rate strengthened
weakened against against Philippine
Philippine Peso Peso
Cash in bank P
=40,498 (P
=40,498)
Receivables 1,718 (1,718)
Due to parent company (868,651) 868,651
Net increase (decrease) in pre-tax loss and equity (P
=826,435) P
=826,435
2018
Foreign currency Foreign currency
exchange rate exchange rate
weakened against strengthened against
Philippine Peso Philippine Peso
Cash in bank =68,966
P (P
=68,966)
Due from parent company 3,325 (3,325)
Due to parent company (367,371) 367,371
Net increase (decrease) in pre-tax loss and equity (P
=295,080) =295,080
P
Price risk
The Company does not hold financial assets and liabilities that are price sensitive, nor does it have
equity investments that are subject to price fluctuations. As such, the Company is not exposed to
significant price risk.
16.7 Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding
through an adequate amount of committed credit facilities, efficient collection of customers’ accounts
and the ability to close out market positions. The Company aims to maintain flexibility in funding by
monitoring and ensuring that there are available funds to operate the business. Management monitors
rolling forecasts of the Company’s liquidity reserve on the basis of expected cash flows.
The Company believes that the cash generated from its operating activities is sufficient to meet
currently maturing obligations required to operate the business.
*SGVFS038813*
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As at December 31, 2019 and 2018, all of the Company’s financial liabilities, which consist of accounts
payable and accrued expenses and due to Parent Company, are contractually payable on demand and
up to sixty (60) days’ term.
The table below analyzes the Company’s financial liabilities into relevant maturity based on the
remaining period at the reporting date to the contractual maturity date:
2019
Carrying Less than 6 Months More than
Amount 6 Months to 1 Year 1 Year
Accounts payable and accrued expenses =8,333,793
P =8,333,793
P =–
P =–
P
Due to parent company 137,735,415 137,735,415 – –
=146,069,208
P =146,069,208
P =–
P =–
P
2018
Carrying Less than 6 Months More than
Amount 6 Months to 1 Year 1 Year
Accounts payable and accrued expenses =9,016,143
P =9,016,143
P =–
P =–
P
Due to parent company 138,797,900 138,797,900 – –
=
P147,814,043 =147,814,043
P – =–
P
The Company expects to settle the above financial liabilities in accordance with their contractual
maturity date.
The carrying amounts above approximate the undiscounted cash flows as the impact of discounting is
not significant, considering their short-term maturity.
As shown in Note 16.2, the Company has sufficient financial assets such as cash and receivables which
are available to settle these financial liabilities.
Capital management
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue
as a going concern, so that it can continue to provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends
paid to shareholders, return capital to shareholders, obtain borrowings from banks or related parties,
and issue new shares. Total capital being managed by the Company is its total equity, excluding reserve
on remeasurements of retirement benefits, as shown in the statements of financial position. The
Company is not subject to externally imposed capital requirements.
17. Supplementary information required by the Bureau of Internal Revenue (BIR)
This information is presented for purposes of filing with the BIR and is not a required part of the basic
financial statements.
*SGVFS038813*
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Revenue Regulations (RR) No. 15-2010

On December 28, 2010, RR No. 15-2010 became effective and amended certain provisions of
RR No. 21-2002 prescribing the manner of compliance with any documentary and/or procedural
requirements in connection with the preparation and submission of financial statements and income tax
returns. Section 2 of RR No. 21-2002 was further amended to include in the Notes to Financial
Statements information on taxes, duties and license fees paid or accrued during the year in addition to
what is mandated by PFRS.
Below is the additional information required by RR No. 15-2010:
a. Output value added tax (VAT)
Output VAT declared for the year ended December 31, 2019 and the gross receipts upon which
the same was based consist of:
Gross amount of
revenues Output VAT
Zero-rated transactions
Sale of services =38,172,003
P =−
P
Sale of transportation equipment 446,429 53,571
Zero-rated sales are sale of services other than processing, manufacturing or repacking rendered to
a person engaged in business conducted outside the Philippines, the consideration for which is paid
in acceptable foreign currency and accounted for in accordance with the rules and regulations of
the BSP.
b. Input VAT
Movements in input VAT for the year ended December 31, 2018 follow:
Input VAT
Beginning Balance P4,142,783
=
Add: Current year’s domestic purchases/payments for
Goods for resale 31,215
Services 1,552,966
Capital goods subject to amortization −
Total input VAT, net 5,726,964
Application against output VAT 53,571
Tax credits/payment –
Total input VAT 5,673,393
Written-off input VAT 2,793,077
Total input VAT, net =2,880,316
P
c. Excise tax
The Company has no transactions that are subject to excise tax for the year ended
December 31, 2019.
*SGVFS038813*
- 31 -
d. Documentary stamp tax
The Company had no transactions for the year ended December 31, 2019 pertaining to acceptance,
assignment, sale or transfer of an obligation, rights, or property requiring payment of documentary
stamp tax.
e. All other local and national taxes
All other local and national taxes paid and accrued for the year ended December 31, 2019 consist
of:
Amount
License and Permit Fees =459,282
P
Others 20,000
=479,282
P
The above local and national taxes are presented as taxes and licenses within operating expenses.
The remaining taxes and licenses pertain to penalties and other licenses and registrations as at
December 31, 2019.
f. Withholding taxes
Paid Accrued Total

Withholding tax on compensation =2,638,712
P P188,915
= =2,827,627
P
Expanded withholding tax 1,418,999 134,897 1,553,896
=4,057,711
P = 323,812
P =4,381,523
P
g. Tax assessments and cases
On December 19, 2019, the Company applied for cancellation of assessment of the remaining tax
liabilities covered by the tax amnesty that arise from the 2007 and 2008 tax assessments. The
Notice of Issuance of Authority to Cancel Assessment (NIATCA) certificate was issued on
January 20, 2020, confirming the cancellation of tax liabilities amounting to =P9,045,688 and
=7,705,118 pertaining to the 2008 and 2007 assessments, respectively.
P
18. Supplementary information required by the BSP
This information is presented for purposes of filing with the BSP and is not a required part of the
basic financial statements prepared in accordance with PFRS.
BSP Circular No. 1075

The Monetary Board (MB), in its Resolution No. 48 dated January 8, 2020 approved the amendments
to the relevant provisions of the manual regulations for non-bank financial institutions prescribing the
manner of compliance with any documentary and/or procedural requirements in connection with the
preparation and submission of financial statements. Subsection 4511N.6 was further amended to
include in the Notes to Financial Statements supplementary information as prescribed under Annex
N-19-c of Appendix N-19.
*SGVFS038813*
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Below is the additional information required by BSP Circular No. 1075:
a. Total volume and value of remittance and foreign exchange transactions for the year 2019:
Type of Transactions No. of Amount in Amount in PHP

Transactions USD
A. International Inward (Payout) Remittance 274,930 $138,074,784 =7,143,529,932
P
Transactions
B. International Outward (Send Out) Remittance – – –
Transactions
C. Domestic Inward (Payout) Remittance – – –
Transactions
D. Domestic Outward (Send Out) Remittance − − −
Transactions
E. Foreign Currencies Bought – – –
F. Foreign Currencies Sold 352 102,658,300 5,311,286,708
G. International Inward (Payout) Remittance – – –
Facilitated Through VC
H. International Outward (Send Out) Remittance – – –
Facilitated Through VC
I. Exchange of VC to Philippine Peso/Other – – –
Currency
J. Exchange of Philippine Peso/Other Currency to – – –
VC
K. Other VC Transactions (please specify) – – –
b. Basic quantitative indicators of financial performance:
Formula 2019 2018

Return on average equity Net income after income 61% 54%
tax/Average total capital
accounts
Return on average assets Net income after income 4% 2%
tax/Average total assets
*SGVFS038813*

Afs (2019)

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UniTeller Filipino, Inc.

Independent Auditor’s Report

INDEPENDENT AUDITOR’S REPORT

The Board of Directors and Stockholders

Auditor’s Responsibilities for the Audit of the Financial Statements

SYCIP GORRES VELAYO & CO.

February 28, 2020

LIABILITIES AND EQUITY

Total liabilities and equity P

See Notes to the Financial Statements.

Years Ended December 31

Income from operations 3,959,396 5,991,345

Other income, net 14 6,491,585 1,513,401

Income before income tax 10,450,981 7,504,746

Income tax expense 13 2,528,951 3,270,799

Net income 7,922,030 4,233,947

Other comprehensive income (loss)

Items that will not be reclassified subsequently

Total comprehensive income P

See Notes to the Financial Statements.

Balances at January 1, 2019 P7,800,000

Balances at December 31, 2019 =18,068,000

Balances at January 1, 2018 =7,800,000

Balances at December 31, 2018 =7,800,000

See Notes to the Financial Statements.

Years Ended December 31

CASH FLOWS FROM OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

NET INCREASE IN CASH 64,299,729 28,266,325

CASH AT BEGINNING OF THE YEAR 101,037,825 72,937,836

CASH AT THE END OF THE YEAR 4 P

See Notes to the Financial Statements.

2. Summary of Significant Accounting Policies

2.1 Basis of preparation

2.2 Changes in accounting policies and disclosure

· PFRS 16, Leases

The effect of adoption of PFRS 16 as at January 1, 2019 is, as follows:

Leases previously accounted for as operating leases

Based on the above, as at January 1, 2019:

Operating lease commitments as at December 31, 2018 =6,137,518

· Philippine Interpretation IFRIC-23, Uncertainty over Income Tax Treatments

2.3 Financial instruments

Initial Recognition and Classification of Financial Instruments

Financial assets at amortized cost

Financial liabilities at amortized cost

Interest expense on financial liabilities is recognized at gross amount in profit or loss.

Derecognition of Financial Instruments

2.4 Impairment of financial assets

2.5 Offsetting financial instruments

2.6 Fair value measurement

2.7 Cash and cash equivalents

2.8 Prepaid expenses and other current assets

2.9 Property and equipment

2.10 Impairment of non-financial assets

2.11 Refundable deposits

2.12 Accounts payable and other accrued expenses

2.13 Lease liability

2.15 Retirement liability

2.17 Revenue recognition

Service fee income

2.18 Cost and expense recognition

2.19 Operating leases