Study of the Eurotunnel Group combined accounts. For the year ended December 31st, 2001

Résumé du document

The Combined Accounts consist of the combination of the accounts of the EPLC Group and of ESA and its subsidiaries as set out in the table below.( Eurotunnel PLC, Eurotunnel SA and their subsidiaries collectively make up the Eurotunnel Group ) These Combined Accounts have been prepared on the going concern basis, under the historical cost convention and in accordance with French Generally Accepted Accounting Principles ("GAAP") and the accounting policies described below. The Combined Accounts constitute the ESA Group Consolidated Accounts according to French law.

Extraits

[...] But there are also the terminals, the land, the other buildings, the plants, machinery, vehicles and so on. As a consequence, this firm has very important costs of depreciation. Comparative with this huge figure the other lines of the assets column are very small (the concession fixed assets represent 96% of the total). The line other financial debtors represents the acquisition by Eurotunnel of three leasing companies. This is quite interesting because it is a fiscal operation. Actually, those companies had debts because of their activities. [...]

[...] 36) talks about “exceptional profit”, but what is meant by it? We might also wonder about what is meant by debt provisions” (note 8 p. 37) or by debt fully secured on lease receivables due to the companies” (note 9 p. 37). Thereby, we shall say information is missing. Excessive notes This reports gives a great deal of superfluous details. Is it really necessary to remind the history of the group share options scheme since 1992 (note 11.b, c and d p. Moreover, note 14.e (p. [...]

[...] Three subsidiaries of ESA and three subsidiaries of EPLC, were not consolidated as they remained dormant or were not material in 2001. Cost Sharing The Concession requires that the Eurotunnel Group shall share equally the cost price of the Project and all revenues and costs relating to the operation of the fixed link between the UK and French Companies. Concession fixed assets: all costs and revenues arising either directly or indirectly from the design, financing and construction of the Project are capitalised and shared between CTG and FM, and shown as fixed assets. [...]

[...] Chartered accountants have audited the financial statements of the Eurotunnel Group for the year ended 31 December 2001, which comprise the balance sheet, the profit & loss account, the cash flow statement, and the related notes. Their responsibility is to audit these financial statements in accordance with relevant legal and regulatory requirements and French auditing standards. Their audit includes : An examination on a test basis of evidence relevant to the amounts and disclosures in the financial statements. An assessment of the significant estimates and judgements made by the directors in the preparation of financial statement, and of the consistency of the director's report with the financial statements. [...]

[...] An evaluation of the overall adequacy of the presentation of information in the financial statement. But, contrary to the Anglo-Saxon auditor's reports, this report doesn't specify whether : the company has kept proper accounting reports auditors have received all the information and explanations required for their audit Information regarding directors remunerations and transactions with the company is disclosed The accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed Financial Accounting, the Ratios Estimation of the share's value (Chap p64) Earning per share (EPS) = Net income = -187,834,000€ Average number of shares outstanding 2,083,676,484 = It is clear that EPS corresponds to the financial situation: the net income is a loss, so the ratio is negative. [...]