Description Page - Doosan Power Systems

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DOOSAN BABCOCK ENERGY Annual Report and Financial Statements 2007 Notes to the financial statements continued 1. Accounting policies (continued) Taxation The credit or charge for United Kingdom taxation represents the amount which it is estimated will materialise as a receipt or payment of corporation tax on the results of the period. Overseas taxation is based on profits of overseas subsidiaries and on other overseas income. Except where otherwise required by accounting standards, full provision is made for all timing differences which have arisen but not reversed at the balance sheet date. A deferred tax asset is recognised to the extent that there are likely to be suitable taxable profits in the future against which the underlying timing differences can be deducted upon reversal. Fixed Assets Freehold properties, plant, machinery and equipment are stated at cost less depreciation. Depreciation is charged on cost on a straight line basis at rates appropriate to the expected useful lives of the assets concerned. The principal rates of depreciation used are:- Freehold land Not depreciated Freehold and leasehold buildings 2% to 10% Plant and machinery Heavy production 6 2 /3% Other 10% Motor vehicles 20% to 25% Office equipment and furniture 20% Computers and software 20% to 33 1 /3% Leasing and Hire Purchase Commitments Assets held under finance leases and hire purchase contracts are capitalised and are depreciated over either the term of the lease or their useful lives. The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. Hire charges paid under operating leases are charged against income on a straight line basis over the term of the lease. Investments Investments held as fixed assets are stated at cost less provision for any impairment. Stocks and Work in Progress Stocks are valued at the lower of cost and net realisable value. Long-term work in progress is valued at cost less any provisions necessary to reduce it to net realisable value. Cost comprises direct materials, and in the case of work in progress, direct labour and overheads, including depreciation, but excludes selling and administration costs. Amounts recoverable on contracts are included in debtors and represent turnover recognised in excess of payments on account. 26 Pension Costs Defined Benefit Scheme The Group operates a pension scheme providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the Group. Contributions are based on periodic actuarial calculations and are charged so as to spread the cost of the pensions over the expected services lives of the employees who are members of the scheme. The scheme was closed to new members on 31 March 2001. Pension scheme assets are measured using market rates. Pension scheme liabilities are measured using a projected unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability. The pension scheme surplus (to the extent that it is recoverable) or deficit is recognised in full. The movement in the scheme surplus/deficit is split between operating charges, finance items and, in the statement of total recognised gains and losses, actuarial gains and losses. Defined Contribution Scheme The Group also operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The amounts charged against profit represent the contributions payable to the scheme in respect of the accounting period. Liquid resources and cash Liquid resources comprise short term treasury deposits which have maturity dates of up to one year, government securities and money market funds. Cash comprises cash in hand and on overnight deposit less, for the purpose of the cash flow statement only, overdrafts. Government grants Capital based Government grants are credited to deferred income when received and are released to the profit and loss account over the useful economic lives of the assets to which they relate.
2. Geographical analysis DOOSAN BABCOCK ENERGY Annual Report and Financial Statements 2007 Proforma 12 months 9 months 12 months ended ended ended December December March 2007 2007 2007 £000 £000 £000 Turnover by destination United Kingdom 337,783 265,415 326,536 Other EU 32,621 25,287 25,862 Rest of Europe 8,761 8,526 4,216 East Asia 30,496 21,220 16,948 South East Asia 1,370 528 1,728 North America 57,514 27,731 33,441 South and Central America 705 268 502 Middle East 620 501 402 Africa 1,175 402 816 Other 559 6 – 471,604 349,884 410,451 Turnover by origin United Kingdom 392,725 306,161 357,651 United States of America 55,708 26,713 29,557 India 193 16 263 China 343 343 153 Poland 11,588 8,087 13,646 Germany 11,047 8,564 9,181 471,604 349,884 410,451 As at As at December March 2007 2007 £000 £000 Net assets by location United Kingdom 46,924 35,608 United States of America (16,306) (15,260) India (416) (218) China (573) (449) Oceania (incl. Australia) 427 423 Poland 2,187 1,866 Germany 841 868 In the opinion of the directors, the Group’s business constitutes a single class of business. 33,084 22,838 A geographical analysis of profit before tax is not given, as in the opinion of the directors such disclosure would be prejudicial to the interests of the Group. 27
Page 1 and 2: Annual Report and Financial Stateme
Page 3 and 4: Financial Highlights * ORDER INTAKE
Page 5 and 6: An international presence From Atla
Page 7 and 8: On 14 December 2006 the Korean corp
Page 9 and 10: Our subsidiaries in Germany and Pol
Page 11 and 12: We are expanding and developing our
Page 13 and 14: Description Page DOOSAN BABCOCK ENE
Page 15 and 16: Board of Directors Gee Won Park Dir
Page 17 and 18: Five Year Summary Major Growth The
Page 19 and 20: The major uncertainty in terms of t
Page 21 and 22: Independent auditors' report to the
Page 23 and 24: Consolidated balance sheet as at 31
Page 25 and 26: Consolidated cash flow statement fo
Page 27: Notes to the financial statements 1
Page 31 and 32: (b) Operating profit is stated afte
Page 33 and 34: 4. Employees and directors (continu
Page 35 and 36: 4. Employees and directors (continu
Page 37 and 38: 7. Intangible fixed assets DOOSAN B
Page 39 and 40: 8. Tangible fixed assets (continued
Page 41 and 42: 9. Fixed asset investments (continu
Page 43 and 44: 14. Provisions for liabilities (con
Page 45 and 46: 18. Cash flow (a) Reconciliation of
Page 47 and 48: 19. Analysis of changes in net fund
Page 49 and 50: 23. Reconciliation of movements in
Page 51 and 52: Contacts Main Offices Global Headqu

Description Page - Doosan Power Systems

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