2004 Crown Investments Corporation of Saskatchewan Annual Report

More documents

Recommendations

Info

Notes to Non-Consolidated Financial StatementsDecember 31, 20048. Commitments and Contingenciesa) CIC has guaranteed the exchange risk that exists upon default of NewGrade’s U.S. denominated debt tothe extent that the default amount would exceed the $360.0 million guaranteed by the GRF.At December 31, 2004, the GRF’s exposure under the guarantee does not exceed $360.0 million. CICdoes not expect any exposure under this guarantee in 2005.b) CIC has indemnified the Government of Canada for their guarantee of NewGrade’s long-term debt, to amaximum of $275.0 million. The fair value of the guarantee is $25.9 million (2003 - $35.6 million).c) CIC guaranteed Meadow Lake Pulp Limited Partnership’s long-term debt payments to a maximum of$54.0 million at December 31, 2004. CIC has been indemnified by Investment Saskatchewan Inc. if thereis any call on this facility.d) CIC has guaranteed the annuities for the Retirement Annuity Fund portion of the Capital Pension Plan.CIC does not expect any exposure under this guarantee in 2005.9. Dividend RevenueDividend revenue consists of the following (thousands of dollars):2004 2003Saskatchewan Telecommunications HoldingCorporationSaskEnergy IncorporatedNewGrade Energy Inc.Saskatchewan Power CorporationInvestment Saskatchewan Inc.Saskatchewan Government Insurance$88,00970,00060,42459,76842,34127,095$76,56426,6607,651168,505-13,782$347,637$293,16210. Public Policy ExpenditureThe Corporation through Cabinet was directed to provide the lowest combined costs in Canada for certainresidential products provided by its subsidiaries Saskatchewan Power Corporation (residential power),Saskatchewan Telecommunications Holding Corporation (basic residential phone service), SaskEnergyIncorporated (residential heating) and Saskatchewan Government Insurance (basic car insurance).During the year it was determined that CIC would need to provide $137 per household to meet the directive.Each payout was delivered as a credit on one of each household’s Saskatchewan TelecommunicationsHolding Corporation, Saskatchewan Power Corporation or SaskEnergy Incorporated bill.102
Notes to Non-Consolidated Financial StatementsDecember 31, 200411. Net Change in Non-Cash Working Capital Balances Related to Operations(thousands of dollars)2004 2003Decrease (increase) in interest and accounts receivableDecrease (increase) in dividends receivableIncrease (decrease) in interest and accounts payable$42113,840987$(133)(105,022)(11,752)$15,248$(116,907)12. Related Party TransactionsIncluded in these non-consolidated financial statements are transactions with various Saskatchewan Crowncorporations, departments, agencies, boards and commissions related to CIC by virtue of common control bythe Government of Saskatchewan and non-Crown corporations and enterprises subject to joint control andsignificant influence by the Government of Saskatchewan (collectively referred to as “related parties”).Routine operating transactions with related parties are settled at prevailing market prices under normaltrade terms. These transactions and amounts outstanding at year end, are as follows (thousands of dollars):2004 2003Category (as per financial statements)Accounts receivableAccounts payableGeneral, administrative and other expensesOther revenue$ 112,36262065$ 5051,412616-In addition, CIC pays Saskatchewan Provincial Sales Tax to the Saskatchewan Department of Finance on all itstaxable purchases. Taxes paid are recorded as part of the cost of those purchases.CIC provides management services to Saskatchewan Government Growth Fund Management Corporation,without charge.These non-consolidated financial statements and the notes thereto separately describe other transactionsand amounts due to and from related parties and the terms of settlement.13. Pension PlanCIC’s employees participate in the Capital Pension Plan (the Plan), a defined contribution pension plan whichis administered by CIC. CIC’s contributions to the Plan include making regular payments into the Plan tomatch the required amounts contributed by employees for current service. The total amount paid to thePlan for 2004 was $215.7 thousand (2003 - $352.8 thousand). Included in the Plan is a Retirement AnnuityFund (the Fund). The Fund provides retirement annuities at the option of retiring members of the Plan. Anactuarial valuation of the Fund is performed annually. The assets of the Fund at December 31, 2004 exceedthe actuarially determined net present value of retirement annuities payable.103
Page 2 and 3:
2004 Financial HighlightsCrown Sect
Page 4 and 5:
Table Of Contents2004 HighlightsLet
Page 6 and 7:
Chair’s MessageSaskatchewan’s C
Page 8 and 9:
Corporate ProfileCIC is the financi
Page 10 and 11:
Corporate ProfileCIC ManagementThe
Page 12 and 13:
Corporate ProfileFinancial and Publ
Page 14 and 15:
Corporate ProfileCIC’s Holdings20
Page 16 and 17:
Corporate ProfileSASKATCHEWAN GOVER
Page 18 and 19:
Corporate ProfileSaskatchewan Telec
Page 21:
Policy and ProgramsUtility Bundle C
Page 24 and 25:
Policy and ProgramsCommitment to Gr
Page 26:
Policy and ProgramsCommitment to Yo
Page 30:
GovernanceFor the purposes of this
Page 33 and 34:
Strategic Direction and Performance
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Management’s Discussion and Analy
Page 43 and 44:
MANAGEMENT’S DISCUSSION AND ANALY
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56: MANAGEMENT’S DISCUSSION AND ANALY
Page 65: MANAGEMENT’S DISCUSSION AND ANALY
Page 68 and 69: Consolidated Statement of Financial
Page 70 and 71: Consolidated Statement of Cash Flow
Page 72 and 73: Notes to Consolidated Financial Sta
Page 96: Notes to Consolidated Financial Sta
Page 99 and 100: Non-Consolidated Statement of Finan
Page 101 and 102: Non-Consolidated Statement of Cash
Page 103 and 104: Notes to Non-Consolidated Financial
Page 105: Notes to Non-Consolidated Financial
Page 110: Pat AtkinsonMinisterPrinted in Sask
show all

2004 Crown Investments Corporation of Saskatchewan Annual Report

Create successful ePaper yourself

Delete template?

Save as template?