B H B H B H B H B Type Size B3-HH-17-A Bevel-helical gearboxes B3

Flender/Flender Gear Units/Bevel-helical gearboxes B3

project-specific coverage of currency riskswhen entering into contracts. This is achievedby hedging the net cash flow of each projectper currency. Financial contracts are thereforeexclusively used to guarantee incoming andoutgoing payments in foreign currencies.Furthermore, the Groups policy is to trade inEURO as far as possible in order to be able tooptimise cash flows in this currency. The Group closely monitors its long-term debts so as to continuously adjust interestrates to the market. The net book value of theGroups long-term liabilities at year end 2is thus, in materiality, equivalent to the marketvalue. 4[Accounting policies] The accounting policies The consolidated annual accounts and annualaccounts for NEG Micon / have been pre-pared in accordance with the DanishCompany Accounts Act, Danish accountingguidelines, and the guidelines laid down bythe Copenhagen Stock Exchange for listedcompanies. The accounting policies used areunchanged from those applied in 1. The joint taxation conditions for the jointly taxed Group have been altered with the resultthat corporation tax in the jointly taxed Groupis paid by the parent company. However, thejointly taxed Danish companies with positiveearnings pay the calculated tax of same to theparent company. Over the past financial year, minor adjust- ments have been made to the form of pre-sentation and comparative figures in relationto previous years. The consolidated annual accounts The consolidated annual accounts include theparent company, NEG Micon /, and subsidi-ary undertakings in which NEG Micon /Scontrols more than 5 per cent of the votes speed reducerspanies that are not classified as subsidia-ry undertakings, but in which NEG Micon /Sowns 2 per cent or more of the voting rightsand exercises an appreciable influence onthese companies operational or financialmanagement, are classed as associatedundertakings. Such companies are not includ-ed in the consolidated annual accounts. Participating interests in subsidiary under- taki