Notes to Financial Statements – March 31, 2002
9. Joint Venture (p.137)
The Corporation contributed 179 acres of land, at appraised value, to a joint venture with Ladco Company Limited on May 11, 1989. The appraised value of the land at that time, adjusted for subsequent sales, was $2,498,349 (2001 - $2,665,304) and is included in joint venture land in note 10. The joint venture activities include the servicing, development and sale of approximately 476 acres of land in the City of Winnipeg, Manitoba. In accordance with the terms of the agreement, the Corporation has provided loan guarantees for the purpose of the joint venture development in an amount not to exceed $2,400,000 (note 24).
The following is a summary of the corporation’s pro rata share of the assets, liabilities, revenues of the Ladco Company Limited joint venture.
2002 2001
Current Assets:
Cash and short term investments $529,819 $459,311
Accounts receivable from land sales 1,163,324 $1,020,285
1,693,143 1,479,596
Long term assets:
Development in progress 748,046 1,097,473
Total Assets $2,441,189 $2,577,069
Current liabilities:
Accounts payable from accrued liabilities 518,645 844,986
Total Liabilities 518,645 844,986
Net Assets $1,922,544 $1,732,083
Sales of land $1,354,793 $1,179,990
Cost of land sales 1,038,909 680,323
Gross margin 315,884 499,667
Expenses:
Interest on bank indebtedness 4,754 4,551
General 76,375 54,448
Other 44,560 51,812
Total expenses 125,689 110,811
Net income for the year $190,195 388,856
10. LAND (p.139)
2002 2001
Under development $156,710 $187,210
Future development or sale 7,828,785 7,778,828
Leased to co-operatives 1,734,392 1,734,392
Joint venture 2,498,349 2,665,304
Land $12,218,236 $12,369,734
24. Guarantees (p.147)
The Corporation has guaranteed the repayment of mortgages and has issued letters of credit which guarantee the terms and conditions of land development agreements and construction contracts. The outstanding guarantees are as follows:
2002 2001
Joint Venture Investment Guarantee (note 9) $2,400,000 $2,400,000