SEC Form 20-IS - iRemit Global Remittance

22. Related Party Transactions
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Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
In the ordinary course of business, the Parent Company transacts with its related parties. Under
the Parent Company’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 Parent Company engages in transactions with related parties consisting primarily of the
following:
(a) Delivery fees earned from clients of subsidiaries and associates are as follows:
2011 2010 2009
IRCL P=55,556,118 P=55,227,017 P=51,071,109
HKHCL 46,127,251 33,202,567 25,364,567
IAPL and WEPL 28,136,596 26,166,135 30,787,242
ISPL 24,463,777 25,080,948 27,016,303
IGRL 17,147,494 21,562,260 22,736,884
LSML 7,562,975 10,342,216 9,633,356
INZL 4,032,091 3,498,875 2,697,639
IRCGmbH 1,242,098 3,899,549 4,368,628
P=184,268,400 P=178,979,567 P=173,675,728
(b) The Parent Company leases office spaces from Oakridge Properties (see Note 18). Rent
expense amounted to P=9.88 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 18). 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 16). 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.
(e) In 2011, the Parent Company provides call center services to process the phone-in transactions
of IRCL, INZL, IGRL and WEPL. Service income earned amounted to P=6.17 million.
*SGVMC116501*