Investor Presentaiton

Business Fund via legislation on November 6, 2001 and both were paid out in a previous year. A third client, that was authorized financing of $15,100 approved in fiscal 2011, currently has an outstanding balance of $14,342 which is now below the $15,000 financing limit threshold (2013-$11,316) and has now been fully disbursed. The risk rating for all clients is monitored on an on-going basis. Clients identified as higher risk are further assessed at year end to determine the extent of potential loss, taking into account the value of the security pledged in support of the financial assistance. This assessment could result in a reduction in the carrying value of the investment via the provision for credit losses. (ii) Interest risk: Interest rate risk is the risk that the market value of the Corporation's investments and debt will fluctuate due to changes in the market interest rates. Interest rate risk is mitigated due to the fact that the Corporation matches the repayment timing of amounts borrowed with the repayment timing of financing advanced as closely as practical. It is management's opinion that the Corporation is not exposed to significant interest rate risk arising from financial instruments. (iii) Market price risk: Market price risk is the risk that the value of an investment will fluctuate as a result of changes in the market prices, whether those changes are caused by factors specific to the individual financial instrument, its issuer or factors affecting similar financial instruments traded in the market. During the current year, the Corporation redeemed all investments held in publicly traded equities (2013 - $4,168). As these equities are carried at fair value with the fair value changes recognized in the statement of remeasurement gains and losses, all changes in the market conditions will directly result in an increase (decrease) of accumulated remeasurement gains (losses). (iv) Liquidity risk: Liquidity risk is the risk that the entity will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity requirements are managed through the receipt of provincial grants, income generated from loans receivable and equity investments, and principal repayments received on loans receivable. These sources of funds are used to pay operating expenses and debt servicing payments to the Province of Nova Scotia. In the normal course of business the Corporation enters into contracts that give rise to commitments for future payments which also impact the Corporation's liquidity. The Corporation also maintains cash on hand for liquidity purposes and to pay accounts payable and accrued liabilities. The following table summarizes the fixed contractual maturities for all financial liabilities as at March 31, 2014: 2014 2013 Within 1 year $ 2 to 5 years 6 to 10 years Over 10 years Total Total $ $ $ Accounts payable and accrued liabilities 8,326 8,326 8,294 Accrued interest payable 724 724 516 Employee benefits and other liabilities 690 240 213 376 1,519 1,432 Transfer payments payable to the Province 49 49 26 Deferred revenue 242 64 I 306 731 Provision for payment of guarantees 300 Long-term debt due to the Province 21,207 43,430 6,426 71,063 69,390 31,238 43,734 6,639 376 81,987 80,689

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