Download 2004 Annual Report - Polymetal

Long−term VAT receivable at De−cember 31, 2004 and 2003 pri−marily represents VAT balancesresulting from capital expenditureswhich are not expected to be recov−ered within twelve months followingrespective balance sheet dates.Management believes that suchbalances are fully recoverable fromtax authorities at the time respec−tive capital assets qualify as put intooperation for VAT purposes.Short−term VAT receivable at De−cember 31, 2004 and 2003 re−lates to capital expenditures in fixedassets expected to be put into usewithin twelve months following re−spective balance sheet dates andVAT receivable from current op−erations.VAT claims are submitted to tax au−thorities on a monthly basis.The short term VAT receivable asat December 31, 2003 was mainlyrepaid by the tax authorities tothe Group in 2004. As at June 30,2005, of the amount of VAT receiv−able as at December 31, 2004 col−lected U.S. Dollar 7 373 and theCompany expects the balance to befully repaid during the second half ofthe year in due order.NOTE 13Accounts Payable and Accrued LiabilitiesDecember 312004December 312003Trade accounts payable 15 563 7 988Accrued interest payable to third parties 1 689 3 910Other accounts payable 3 165 3 499Total accounts payable and accrued liabilities 20 417 15 397NOTE 14Accounts Payable and Promissory Notes – related partiesDecember 312004Trade accounts payable to Geotekhservice 598Trade accounts payable to Press−Invest 1 653December 312003Other trade accounts payable 1 777 1 393Short−term promissory notes − 254Total accounts payable and promissory notes – related parties 4 028 1 647At December 31, 2004 Press−Invest was under control of ZAO ICT.NOTE 15Short−term Debt and Current Portion of Long−term DebtInterestrate %December 312004Interestrate %December 312003Khanti−Mansiiski Bank (U.S. Dollar) − 11% 7 500Khanti−Mansiiski Bank (RR) − 16% 7 639Alfa−Bank (U.S. Dollar) − 9,5% 40 000MDM−Bank (U.S. Dollar) − 11,5−12,5% 32 275NIKoil Bank (U.S. Dollar) 9% 30 000 −Current portion of long−term loans 21 318 27 207Total short−term debt and current portionof long−term debt51 318 114 62162 Polymetal annual report 2004