Mandal Daatgal - Annual report 2012 [eng]

Page 63

Annual report 2012

Other revised standards and interpretations: IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine“, considers when and how to account for the benefits arising from the stripping activity in mining industry. Unless otherwise described above, the new standards and interpretations are not expected to affect significantly the Company’s financial statements.

7. Cash and Cash Equivalents In thousands of Mongolian Tugriks

Cash on hand Bank overdraft

31 Dec 2012

31 Dec 2011

1,974

646

(651)

-

Settlement accounts with banks

117,496

-

Demand deposits with banks

112,878

256,769

17,523

256,769

639,585

1,372,101

Term deposits with banks Total cash and cash equivalents

Cash and cash equivalents are not collateralised. All amounts are neither past due nor impaired. Term deposits with banks included in cash and cash equivalents have original maturities of less than three months and bear interest rate ranging from 8% to 13.6% p.a (2011: 6.6% p.a). The settlement account and the demand and term deposits are placed in commercial banks operating in Mongolia. The carrying amount of cash and cash equivalents approximates fair value. Settlement account with banks includes an amount of MNT 21,473 thousand (21,946 thousand in 2011) denominated in US Dollars. All other balances in cash and cash equivalents are denominated in Mongolian Tugrik. The maturity analysis of cash and cash equivalents are disclosed in Note 24. The credit quality of cash and cash equivalents balances may be summarised based on Standard and Poor’s ratings or equivalents of Moody’s and/or Fitch ratings. The credit quality at 31 December 2012 was as follows.

In thousands of Mongolian Tugriks 31 Dec 2012

31 Dec 2011

1,974

646

- B- o B+ rated

430,226

1,188,605

Unrated

207,385

182,850

639,585

1,372,101

Cash on hand

Total cash and cash equivalents

The unrated balance relates to one commercial bank in Mongolia, which has not been rated by any rating agency, refer to Note 8.

8. Deposits with Banks In thousands of Mongolian Tugriks

Term deposits with banks Total deposits with banks

31 Dec 2012

31 Dec 2011

5,523,827

4,669,817

5,523,827

4,669,817

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