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• 7) Schedule of existing debt and terms thereof at June 30, 1992. <br /> 8) Analysis of proposed financing (including the grant currently <br /> being applied for) for the construction of the new facility in <br /> Elk River by Tescom Corporation. <br /> After obtaining these documents, we performed the following <br /> procedures: <br /> • 1) We tested the financial documents listed above for internal <br /> consistency. <br /> 2) We calculated pertinent ratios on selected key figures of the <br /> financial statements for the four and one-half year period. <br /> 3) We calculated the debt service requirements of Tescom <br /> Corporation assuming the financing occurred as proposed, and <br /> compared these requirements with projected cash availability. <br /> 4) We analyzed the aged accounts receivable accounts payable as <br /> of July 3 , 1992 . <br /> 5) We calculated an estimate of liquidation values of Tescom <br /> Corporation' s assets, using commercial lending general <br /> practices, in order to determine the coverage provided by the <br /> security in relation to the debt being secured. <br /> 6) We determined the procedures performed by the City of Elk <br /> River as part of their due diligence search and reviewed the <br /> results of their lien searches and name searches in order to <br /> identify any filings of public record against Tescom <br /> Corporation. <br /> Conclusion <br /> On the basis of the procedures described above, nothing came to our <br /> attention which would cause us to have reservations about the <br /> financial information presented to us. We are not aware of any <br /> omissions, judgements or liens, other than those encountered in the <br /> ordinary course of business and fully disclosed in the audited <br /> financial statements described above. <br /> In addition, nothing came to our attention to indicate Tescom <br /> Corporation would be unable to service the debt to the city <br /> resulting from the grant from the State of Minnesota Department of <br /> Trade & Economic Development. Finally, nothing came to our <br /> attention which would cause us to believe Tescom Corporation does <br /> not fulfill the requirements of the State of Minnesota Department <br /> - • of Trade & Economic Development for such grants. <br />