SEC Form 20-IS - iRemit Global Remittance

10. Investments in Subsidiaries and Associates
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The Parent Company’s investments in subsidiaries and associates consist of the following:
2011 2010
Subsidiaries:
IRCGmbH P=103,215,083 P=78,200,341
IGRL 78,653,145 71,200,000
LSML 42,554,665 42,554,665
WEPL 21,336,890 9,033,072
IRCL 13,444,000 13,444,000
IAPL 8,552,000 8,552,000
PSAGL 5,958,800 5,958,800
KKIJ 5,413,120 –
INZL
Associates:
32,400 32,400
ISPL 12,600,000 12,600,000
HKHCL 3,573,974 3,573,974
P=295,334,077 P=245,149,252
Establishment of subsidiaries
IRCGmbH
The Parent Company’s BOD approved IRCGmbH’s incorporation on July 8, 2005 as a stock
corporation to be organized and registered in Austria. Accordingly, the Parent Company made an
investment of P=3.55 million on July 18, 2005.
On December 21, 2009, the shareholders of IRCGmbH made a non-refundable shareholders’
contribution amounting to EUR1.50 million (P=99.66 million) to the entity to strengthen its equity.
The additional investments were taken from the outstanding receivables of the Parent Company
from IRCGmbH amounting to P=91.16 million and were recognized by the latter as capital reserves
to wipe out its accumulated deficit amounting to GBP0.56 million (P=52.41 million). As a result of
the application of receivables, the Parent Company recognized a receivable amounting to
P=16.52 million from the noncontrolling shareholder. The remaining P=8.49 million was recognized
as a receivable from the noncontrolling shareholder in the separate financial statements of
IRCGmbH. On September 28, 2010, the Parent Company advanced the P=8.49 million to
IRCGmbH as payment of the receivable from the noncontrolling shareholder. This resulted to the
increase in the Parent Company’s receivable by P=8.49 million (see Note 8). The existing
ownership ratio of 74.90% and 25.10% was maintained towards the end of December 31 2010.
On May 5, 2011, the Parent Company acquired the remaining 25.10% ownership interest in
IRCGmbH from the noncontrolling stockholder for a consideration of P=25.01 million. The
acquisition increased the Parent Company’s ownership interest in IRCGmbH to 100.00% from
74.90%. The receivable from noncontrolling shareholder was applied in full against the total
consideration (see Note 8).
Consequently, on October 11, 2011, IERCAG changed its legal name to IREMIT Remittance
Consulting GmbH (IRCGmbH) and changed its legal status from a stock company to a limited
liability company. It also amended its Articles of Incorporation to include management
consultancy in its business activities.
*SGVMC116501*