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
63