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10 Mineral rights continued<br />
As of 31 December <strong>2011</strong> licenses for the exploration, evaluation and extraction of crude hydrocarbons at the Yuzhny and Perelyubsko-Rubezhinskiy deposits<br />
were in the exploration phase.<br />
Under the terms of valid licenses for the exploration and development of potash and apatite deposits, the Group is required to comply with a number of conditions,<br />
including preparation of design documentation, commencement of the construction of mining facilities and commencement of the extraction of mineral resources<br />
by certain dates. If the Group fails to materially comply with the terms of the license agreements there are circumstances whereby the licenses can be revoked.<br />
The management of the Group believes that the Group faces no material regulatory risks in relation to the validity and operation of any of its licenses.<br />
11 Inventories<br />
<strong>2011</strong> 2010<br />
Materials 5,821,720 3,872,290<br />
Work in progress 1,180,983 832,876<br />
Finished goods 6,445,567 3,891,113<br />
Catalysts 1,784,203 1,558,325<br />
Less: provision for obsolete and damaged inventories (275,074) (326,712)<br />
Total inventories 14,957,399 9,827,892<br />
12 Trade receivables, prepayments, other receivables and other current assets<br />
<strong>2011</strong> 2010<br />
Trade receivables<br />
Trade receivables denominated in RR 1,074,277 1,142,115<br />
Trade receivables denominated in US$ 2,306,373 1,519,960<br />
Trade receivables denominated in Euro 119,195 119,862<br />
Trade receivables denominated in other currencies 182,696 94,520<br />
Less: impairment provision (246,628) (165,639)<br />
Total trade receivables – financial assets 3,435,913 2,710,818<br />
Prepayments, other receivables and other current assets<br />
Advances to suppliers 3,737,569 3,347,157<br />
VAT recoverable and receivable 5,040,882 3,737,607<br />
Income tax receivable 198,767 18,416<br />
Other taxes receivable 43,513 32,076<br />
Other receivables 891,306 511,926<br />
Less: impairment provision (161,311) (151,607)<br />
Subtotal non-financial assets 9,750,726 7,495,575<br />
Interest receivable 440,036 27,557<br />
Subtotal financial assets 440,036 27,557<br />
Total prepayments, other receivables and other current assets 10,190,762 7,523,132<br />
Total trade receivables, prepayments, other receivables and other current assets 13,626,675 10,233,950<br />
Including<br />
Financial assets 3,875,949 2,738,375<br />
Non-financial assets 9,750,726 7,495,575<br />
Management believes that the fair value of accounts receivable does not differ significantly from their carrying amounts.<br />
Annual Report and Accounts <strong>2011</strong> EuroChem 95<br />
Financial information
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