OFFERING MEMORANDUM Global Offering of up to ... - Nordex

ANNUAL ACCOUNTS FOR THE FISCAL YEAR
ENDED SEPTEMBER 30, 2000
NOTES TO THE FINANCIAL STATEMENTS
(I) GENERAL
The annual financial statements of NORDEX AG for the fiscal year ended September 30, 2000, have
been prepared according to HGB and GmbHG provisions.
In the balance sheet and income statement, certain captions have been summarized for enhanced
transparency of presentation but are detailed further down in these Notes.
The income statement has been presented in the total-cost format.
In derogation of the prior-year practice, the other (non-income) taxes are shown after the result from
ordinary operations.
(II) ACCOUNTING AND VALUATION PRINCIPLES
Intangible assets are valued at cost less straight-line amortization.
Tangible assets are valued at (purchase or production) cost, less straight-line depreciation. The
production cost of internally manufactured assets includes besides direct costs also prorated
overheads.
For plant and equipment purchased in the first half-year, the full annual rate of depreciation is applied
while for additions in the second 6-month period, half the annual rate is used.
Grants received are offset against the cost of the office building and wind turbine in Rerik.
So-called low-value assets (i.e., at net cost of DM 800 each or less) are fully written off pursuant to Art.
6(2) German Income Tax Act (‘‘EStG’’).
Financial assets are stated at cost.
Current assets are shown at the lower of cost or market.
Inventories are stated at the lower of (purchase or production) cost or market. Production cost includes
direct materials, direct labor, as well as any production overheads subject to capitalization under tax
regulations. Work in process is stated at net realizable value to allow for any anticipated losses.
The deduction of prepayments received from inventories is openly disclosed.
The receivables and sundry current assets are stated at face or par value. Specific bad-debt allowances
account for identifiable individual risks, while a general allowance for doubtful accounts provides for
the standard collection risk.
The other accruals provide for all foreseeable risks and uncertain obligations and are determined
according to principles in line with sound business judgment.
Liabilities are stated at the repayment or settlement amount.
Currency translation
Foreign-currency credit balances are translated at the closing rate. For the translation of foreigncurrency
receivables, the historical rate or any lower current rate as of balance sheet date has been
used.
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