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53

8. PROPERTY AND EQUIPMENT (CONTINUED)

Construction in progress represents costs incurred for capital projects under construction at existing casinos and central office.

Upon completion, these costs are transferred into the appropriate capital asset category.

Included in casino development above are the following assets under finance lease:

Net carrying amount of leased assets

March 31, 2016

March 31, 2015

Base Building Costs

– Gold Eagle Casino

$

18,214,371

$

15,286,273

– Painted Hand Casino

7,397,260

8,054,795

– Living Sky Casino

9,705,660

10,566,647

– Dakota Dunes Casino

11,685,295

12,731,556

$

47,002,586

$

46,639,271

9. DUE TO SASKATCHEWAN LIQUOR AND GAMING AUTHORITY

March 31, 2016

March 31, 2015

Balance, beginning of year

$ 61,418,839

$ 66,230,413

Income due to Saskatchewan Liquor and Gaming Authority

86,332,810

84,103,091

Payments to Saskatchewan Liquor and Gaming Authority

(90,179,946)

(88,914,665)

Balance, end of the year

$

57,571,703

$

61,418,839

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 $324,805 (2015 – $329,528). Also, $2,870,680 (2015 – $2,612,874) 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, provided SIGA with the remaining $59 million.

SIGA has drawn on the remaining approved financing to complete the construction of its casinos.

NOTES TO THE FINANCIAL STATEMENTS

Year Ended March 31, 2016