H3FV-20-C flender graffenstaden gearbox Helical gearboxes H3

Flender/Flender Gear Units/Helical gearboxes H3

ess write-downs, if any. Stocks Raw materials, consumables, work in progressand project costs are calculated according tothe FIFO method and valued at the direct costof labour and materials without the additionof production overheads. Work in progress customised for specific sales orders is valued as sales orders in progress atthe direct costs of labour and materials with the addition of the proportionate share of theestimated contribution margin, calculated onthe basis of updated calculations and withdue regard to the estimated rate of comple-tion of the work. The rate of completion isprimarily assessed on the basis of the part-deliveries made. Prepayments from customers are set off against the corresponding generated value ofsales orders in progress. In the valuation of stocks, write-downs are made to meet the risk of losses on obsoleteand slow-moving items. Debtors Debtors are stated at nominal value less aprovision for the risk of losses calculated onan individual basis. Provisions Provisions for normal service and warrantycommitments on wind turbines sold are madeon the basis of empirical assessments of thescope of the commitments. Cash flow statement The cash flow statement for the Group is pre-pared according to the indirect method basedon the result for the year. The cash flow state-ment shows cash generated by operations,investments, financing and the change in cashat bank and in hand during the year, as wellas cash at bank and in hand at the beginningand end of the year. Cash flows from operating activities are calcu- lated as the profit for the year adjusted foroperating items of non-cash nature andchanges in working capital. Cash flows from investment activities com- prise the purchase and sale of intangible,tangible and financial fixed assets. Cash flows from financing activities comprise financing from shareholders and minorityinterests less the dividend paid and the estab-lishment of and repayments on long-termdebts. Liquid assets comprise cash at b