SEC Form 20-IS - iRemit Global Remittance

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