Page 60 - 2012_Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2012
58
20. FINANCIAL RISK MANAGEMENT (CONTINUED)
LIQUIDITY RISK
Liquidity risk is the risk that SIGA is unable to meet its financial commitments as they become due or can only do so at excessive
cost. SIGA manages its cash resources based on financial forecasts and anticipated cash flows. The following summarizes the
contractual maturities of SIGA’s financial liabilities based on undiscounted payments:
2012
Contractual cash flows
Carrying
0 - 12
1 - 2
3 - 5
More than
Financial Liabilities
Amount
months
years
years
5 years
Total
Due to SLGA
$ 60,277,788 $ 60,277,788 $
– $
– $
– $ 60,277,788
Accounts payable and
accrued liabilities
18,166,200 18,166,200
18,166,200
Long-term debt
63,283,923
9,242,465 62,625,731 15,104,794
– 86,972,990
Finance lease obligation 45,063,029
6,531,617
6,531,617 19,594,851 68,259,994 100,918,080
Interest rate swap liability 7,636,994
7,636,994 7,636,994
$ 194,427,934 $ 94,218,070 $ 69,157,348 $ 34,699,646 $ 75,896,988 $ 273,972,052
2011
Contractual cash flows
Carrying
0 - 12
1 - 2
3 - 5
More than
Financial Liabilities
Amount
months
years
years
5 years
Total
Due to SLGA
$ 46,136,295 $ 46,136,295 $
– $
– $
– $ 46,136,295
Accounts payable and
accrued liabilities
19,036,659
19,036,659
19,036,659
Long-term debt
68,220,022
9,091,190
8,822,670
77,596,074
95,509,934
Finance lease obligation
45,522,128
6,471,046
6,471,046
19,413,137
76,738,887 109,094,115
Interest rate swap liability 5,147,896
5,147,896
5,147,896
$ 184,063,000 $ 80,735,190 $ 15,293,716 $ 97,009,211 $ 81,886,783 $ 274,924,899
Management believes its ability to generate funds will be adequate to support these financial liabilities.
CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value
March 31,
March 31,
April 1,
Classification
level
2012
2011
2010
Cash and cash equivalents
L&R
N/A $ 67,924,259 $ 54,215,189 $ 57,069,307
Short-term investments
L&R
N/A
252,500
252,500
252,500
Accounts receivable
L&R
N/A
6,268,523
1,926,309
2,105,135
Due to SLGA
OL
N/A
60,277,788
46,136,295
51,274,319
Accounts payable and accrued liabilities
OL
N/A
18,166,200
19,036,659
17,019,861
Interest rate swap liability
FVTPL
2
7,636,994
5,147,896
5,492,969
FVTPL – Fair value through profit and loss, L&R – Loans and receivables, OL – Other liabilities.
Derivatives are carried at their fair value. Derivative instrument fair value is calculated using pricing models that incorporate current
market prices and the contractual prices of the underlying instruments, the time value of money and yield curves.
The fair value of long-term debt, which is classified as other liabilities, is addressed in Note 11.