Exhibit 99.4
Auditors’ Report on Financial Statement Schedule
To the Shareholders of IPSCO Inc.
We have audited the consolidated financial statements of IPSCO Inc. as at December 31, 2002 and 2001 and for each of the years in the three year period ended December 31, 2002, and have issued our report thereon dated January 28, 2003, except with respect to Note 23 as to which the date is June 18, 2003, which is incorporated by reference in this Registration Statement. Our audits also included the financial statement schedule listed in Item 21(b) of this Registration Statement. This schedule is the responsibility of the Company’s management. Our responsibility is to express an opinion based on our audits.
In our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.
/s/ Ernst & Young LLP
Chicago, Illinois
January 28, 2003
IPSCO Inc.
Schedule II—Valuation and Qualifying Accounts
| | | | Additions
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Description | | Balance at Beginning of Period
| | Charged to Costs and Expenses
| | | Charged to Other Accounts
| | | Deductions
| | | Balance at End of Period
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Year ended December 31, 2002 | | | | | | | | | | | | | | | | | | |
Deducted from asset accounts: | | | | | | | | | | | | | | | | | | |
Allowance for doubtful accounts | | $ | 10,326 | | $ | (706 | ) | | $ | 51 | (1) | | $ | 501 | (3) | | $ | 9,170 |
Allowance for customer claims | | | 3,209 | | | 4,289 | | | | 71 | (1) | | | 4,098 | (4) | | | 3,471 |
Allowance for valuation of assets held for sale | | | 14,505 | | | | | | | 101 | (1) | | | | | | | 14,606 |
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Total | | $ | 28,040 | | $ | 3,583 | | | $ | 223 | | | $ | 4,599 | | | $ | 27,247 |
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Year ended December 31, 2001 | | | | | | | | | | | | | | | | | | |
Deducted from asset accounts: | | | | | | | | | | | | | | | | | | |
Allowance for doubtful accounts | | $ | 6,122 | | $ | 4,435 | | | $ | (53 | )(1) | | $ | 178 | (3) | | $ | 10,326 |
Allowance for customer claims | | | 526 | | | 6,143 | | | | (177 | )(1) | | | 3,283 | (4) | | | 3,209 |
Allowance for valuation of assets held for sale | | | 4,870 | | | 10,000 | | | | (365 | )(1) | | | | | | | 14,505 |
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Total | | $ | 11,518 | | $ | 20,578 | | | $ | (595 | ) | | $ | 3,461 | | | $ | 28,040 |
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Year ended December 31, 2000 | | | | | | | | | | | | | | | | | | |
Deducted from asset accounts: | | | | | | | | | | | | | | | | | | |
Allowance for doubtful accounts | | $ | 1,294 | | $ | 11 | | | $ | 4,977 | (2) | | $ | 160 | (3) | | $ | 6,122 |
Allowance for customer claims | | | 2,363 | | | 5,227 | | | | (5,058 | )(2) | | | 2,006 | (4) | | | 526 |
Allowance for valuation of assets held for sale | | | 5,058 | | | | | | | (188 | )(1) | | | | | | | 4,870 |
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Total | | $ | 8,715 | | $ | 5,238 | | | $ | (269 | ) | | $ | 2,166 | | | $ | 11,518 |
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(1) | | Exchange rate fluctuations |
(2) | | Transfer of allowance from claims to doubtful accounts, net of exchange rate fluctuations |
(3) | | Uncollectible accounts written off, net of recoveries |
(4) | | Claims settled with customers |