Annual Report 2007 - Severstal
Annual Report 2007 - Severstal
Annual Report 2007 - Severstal
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Financial statements<br />
OAO <strong>Severstal</strong> and subsidiaries<br />
Notes to the consolidated financial statements<br />
for the year ended December 31, <strong>2007</strong><br />
(Amounts expressed in thousands of US dollars, except as otherwise stated)<br />
December 31, 2005<br />
Market value Book value Difference<br />
Citibank CLN – Eurobonds 2009 336,830 325,000 11,830<br />
Citibank CLN – Eurobonds 2014 407,438 375,000 32,438<br />
Other bonds 225,552 223,216 2,336<br />
969,820 923,216 46,604<br />
The above amounts exclude accrued interest.<br />
The market value of the Group’s Eurobonds was determined based on London Stock Exchange quotations.<br />
Credit risk<br />
The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet and guarantees (see Note 32e).<br />
The Group has developed policies and procedures for the management of credit exposures, including the establishment of credit committees that actively<br />
monitors credit risk.<br />
The maximum exposure to credit risk for trade receivables including trade receivables from related parties at the reporting date was:<br />
December 31,<br />
<strong>2007</strong> 2006 2005<br />
Available-for-sale financial assets 27,103 10,431 12,681<br />
Held-to-maturity securities and deposits 745,106 1,203,507 676,500<br />
Held-for-trading securities 146,564 152,716 78,280<br />
Loans and receivables 2,099,792 1,833,516 1,697,950<br />
Cash and cash equivalents 1,546,881 1,701,022 1,327,887<br />
4,565,446 4,901,192 3,793,298<br />
The maximum exposure to credit risk for trade receivables including trade receivables from related parties at the reporting date by geographic region was:<br />
December 31,<br />
<strong>2007</strong> 2006 2005<br />
Russian Federation 502,174 249,086 318,725<br />
Europe 981,440 921,789 742,949<br />
North America 128,198 162,896 207,926<br />
The Middle East 38,397 23,241 21,498<br />
South-East Asia 13,214 4,293 7,049<br />
Central and South America 1,604 6,678 4,744<br />
China and Central Asia 19,018 19,084 11,800<br />
Africa 34,343 17,814 31,666<br />
1,718,388 1,404,881 1,346,357<br />
The maximum exposure to credit risk for trade receivables including trade receivables from related parties at the reporting date by type of customer was:<br />
December 31,<br />
<strong>2007</strong> 2006 2005<br />
Wholesale customers 270,298 284,553 354,950<br />
Retail customers 88 4,463 3,312<br />
End-user customers 1,298,692 954,812 835,824<br />
Producers 106,512 137,602 104,957<br />
Other customers 42,798 23,451 47,314<br />
1,718,388 1,404,881 1,346,357<br />
112 <strong>Severstal</strong> <strong>Annual</strong> <strong>Report</strong> <strong>2007</strong>
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