Page 53 - 2012_Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2012
51
9.
DUE TO SASKATCHEWAN LIQUOR AND GAMING AUTHORITY
March 31,
March 31,
2012
2011
Balance, beginning of year
$ 46,136,295
$ 51,274,319
Income due to Saskatchewan Liquor and Gaming Authority
81,641,301
64,094,171
Payments to Saskatchewan Liquor and Gaming Authority
(67,499,808)
(69,232,195)
Balance, end of the year
$ 60,277,788
$ 46,136,295
As described in Note 1, SIGA is required to remit to Saskatchewan Liquor and Gaming Authority (“SLGA”) the net income from the
operation of the slot machines in accordance with a formula as defined in the Agreement. According to the Agreement, unrealized
gains and losses on interest rate swaps are excluded from the calculation of net casino profits payable to SLGA.
Included in the above balance of the due to SLGA is the $5,000,000 that has been retained as a capital reserve as disclosed
in Note 1.
10. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
SIGA is required to pay SLGA an amount equivalent to the imputed Goods and Services Tax (“GST”) that is payable by SLGA on
gaming expenses incurred by SIGA related to its slot machine operations. Included in accounts payable and accrued liabilities are
amounts owing to SLGA for GST of $379,690 (2011 – $365,497). Also, $4,078,076 (2011 – $4,912,394) is due to SLGA for
slot machine and operating system reimbursement and is included in accounts payable and accrued liabilities.
11. LONG-TERM DEBT
CASINO PROJECTS FINANCING
In 2007, SIGA entered into a long-term financing agreement with a financial institution (“Bank”) for $79 million to finance all of
its casino projects. The Bank syndicated this financing with a secondary lender to provide SIGA with $20 million. The Bank, as the
lead lender, is providing SIGA with the remaining $59 million.
SIGA has drawn on the remaining approved financing to complete the construction of its casinos.
The long-term financing agreement is secured by a general security agreement and mortgage of leasehold interests of SIGA’s casinos.