SIGA_Annual_Report_2015 - page 70

NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2015
70
12. FINANCE LEASE OBLIGATION
On December 23, 2004, SIGA entered into an agreement with STC Casino Holdings Limited Partnership, a related party, for lease of
Dakota Dunes Casino on Whitecap Dakota First Nation. Beginning in April 2007, SIGA leased the property from that Partnership for
approximately 20 years at an annual cost of $2,248,477. In 2011, there was an addition to this capital lease, for approximately 16 years, .
at an annual cost of $380,969. In 2012, there was a further addition to this lease for approximately 15 years, at an annual cost of $60,571.
On October 26, 2005, SIGA entered into an agreement with PHC Holdings Limited Partnership, a related party for lease of Painted Hand
Casino in Yorkton. Beginning in February 2009, SIGA leased the property from that Partnership for approximately 19 years at an annual
cost of $1,646,400.
On January 26, 2006, SIGA entered into an agreement with FHQ Casino Holdings Limited Partnership, a related party, for lease of .
Living Sky Casino in Swift Current. Beginning in December 2008, SIGA leased the property from the Partnership for approximately .
19 years at an annual cost of $2,195,200.
Interest rates underlying all obligations under finance leases are fixed at respective contract dates ranging from 11.30% to 13.72% .
(2014 – 11.30% to 13.72%) per annum.
The minimum lease payments under the finance lease obligation are as follows:
March 31, 2015 March 31, 2014
Total future minimum lease payments
$ 94,893,526 $ 86,138,870
Less future finance charges on finance leases
(38,223,432)
(43,357,252)
Present value of finance lease obligation
56,670,094
42,781,618
Less current portion of finance lease obligation
(2,956,909)
(1,397,799)
Finance lease obligation
$ 53,713,185 $ 41,383,819
As at March 31, 2015, scheduled future minimum lease payments of the finance lease obligation are as follows:
1 year
1-5 years
More than.
5 years
Future minimum lease payments
$ 7,910,747
$ 31,445,047
$ 55,537,732
Present value of finance lease obligation
2,956,909
13,940,563
39,772,622
Due to the related party nature of the finance lease obligation, fair value information has not been disclosed as fair value cannot be .
reliably measured.
13. UNCOMMITTED NET PROCEEDS OF TABLE OPERATIONS
The Casino Operating Agreement provides for SIGA to use any net income from the operation of licensed table games for charitable or
religious objects or purposes. Distributions of funds were made during the year as follows:
March 31, 2015 March 31, 2014
Balance, beginning of year
$
$
Net loss from table operations (Note 22)
(2,205,785)
(3,306,857)
(2,205,785)
(3,306,857)
Net loss from table operations allocated to slot operations
2,205,785
3,306,857
Amounts disbursed
Balance, end of year
$
$
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