Page 58 - SIGA Annual Report 2013

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2013
58
20. FINANCIAL RISK MANAGEMENT (CONTINUED)
CREDIT RISK (CONTINUED)
The following reflects an aging summary of SIGA’s trade accounts receivable balances:
March 31, 2013
March 31, 2012
Current
$ 4,264,720
$ 5,507,746
30-59 days
5,153
14,091
60-89 days
90 days and greater
37,158
36,521
4,307,031
5,558,358
Allowance for doubtful accounts
$ 4,307,031
$ 5,558,358
The allowance for doubtful accounts is reviewed quarterly based on an estimate of outstanding amounts that are considered uncollectible.
Historically, SIGA has not written-off a significant portion of its trade accounts receivable balances.
INTEREST RATE RISK
Interest rate risk is the risk of financial loss resulting from changes in market interest rates. In order to manage its interest rate risk
exposure, SIGA entered into separate interest rate swap arrangements for the Dakota Dunes, Living Sky and Painted Hand construction
projects on December 12, 2007. SIGA entered a separate interest rate swap arrangement for Dakota Dunes on March 22, 2013. These
arrangements fixed the interest rates for the loan for each construction project at 4.94%, 5.09%, 5.09% and 2.08% respectively over the
term of the loans.
At March 31, 2013, if interest rates at that date had been 100 basis points lower with all other variables held constant, total comprehensive
income for the year before distribution to SLGA would have been $2,384,661 (2012 – $2,771,694) lower, arising mainly as a result of higher
unrealized losses on interest rate swaps, partially offset by lower interest expense on variable borrowings. If interest rates had been 100
basis points higher, with all other variables held constant, total comprehensive income for the year before distribution to SLGA would have
been $2,384,661 (2012 – $2,771,694) higher, arising mainly as a result of lower unrealized losses on interest rate swaps, partially offset by
higher interest expense on variable borrowings.
FOREIGN EXCHANGE RISK
SIGA faces exposure to the U.S./Canadian dollar exchange rate through the purchase of goods and services payable in U.S. dollars. The
risk is not considered significant.