Regulatory Financial Statements for the year ended ... - Network Rail

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$Pontefract District Rail Action Group - Network Rail$

RAILTRACK PLC APPENDIX D: OTHER NOTES NOTE 1 – RELATED PARTIES Year ended 31 March 2002 During the year to 31 March 2002 Railtrack PLC entered into the following transactions with related parties: • Properties were sold to both Railtrack Developments Limited and Railtrack Spacia Limited for a total consideration of £16.5 million. All such transactions were on an arm’s length basis, were valued by external third parties and were separately invoiced. • Railtrack PLC provided to Railtrack Developments Limited and Railtrack Spacia Limited, both before and after administration, systems and administration resource to bill and recover property income on these companies’ behalf, and has also incurred day-to-day property and management expenses. Prior to administration these expenses passed through intra-group accounts but after administration all such expenses were billed to Railtrack Developments Limited and Railtrack Spacia Limited, who in turn, billed Railtrack PLC for the income collected. • Management services were also provided to Railtrack Telecom Services Limited and Railtrack Travel Limited. These charges related mainly to staff time incurred on these companies’ projects. • Railtrack PLC has in place insurance arrangements through Railtrack Insurance Limited, which became a subsidiary of Railtrack PLC on 25 March 2002 when it was acquired from Railtrack Group PLC for a consideration of £11 million. • Railtrack PLC continues its relationship with Railway Safety which remained unaffected by administration. • Railtrack pays an annual licence fee to ORR which is disclosed in DS4. • During the course of the year the company provided technical advice and project management resource to Union Railways (South) Limited, a subsidiary of Railtrack Group PLC, in respect of construction of the Channel Tunnel Rail Link. All transactions were on an arm’s length basis. • Before the advent of administration the company provided services and facilities to Railtrack Group PLC, including the provision of office space, use of information technology, staff resources for payroll, accounting and corporate affairs functioning, treasury services and company secretarial resources. Subsequent to administration these resources were separated as far as possible with different facilities, premises and personnel. Where services continued to be shared, reimbursement of relevant costs were invoiced to Railtrack Group PLC. 35
RAILTRACK PLC APPENDIX D OTHER NOTES NOTE 2 - CONTINGENT LIABILITIES AND POST BALANCE SHEET EVENTS Year ended 31 March 2002 The SRA are conducting a review of the business case for the Thameslink project, including a review of the scope and timescale for completion. The outcome of this review is uncertain and it could result in Railtrack not receiving full value for the development work it has undertaken. The expenditure relating to Thameslink up to 31 March 2002 amounted to £147 million. The directors believe that it is likely that a proportion of this expenditure will not be remunerated, and accordingly have provided £100 million against the carrying value of the asset. The company continues to negotiate with its principal partner for the West Coast Route Modernisation (‘WCRM’) with a view to addressing the significant commercial risks surrounding the project, including any compensation payable for late delivery and the possible methods of settlement. Further information is disclosed in the accounting policies. On 5 October 1999 a collision and fire took place at Ladbroke Grove on the Great Western Main Line resulting in 31 deaths and a large number of serious injuries. There was also extensive damage to the infrastructure and to the trains involved. Police and HSE enquires are continuing and their outcome is awaited. On 17 October 2000 a derailment occurred at Hatfield on the East Coast Main Line resulting in four deaths and a number of serious injuries. There was also extensive damage to the infrastructure and the trains involved. Police and HSE enquiries are continuing and their outcome is unknown. On 27 June 2002 the company’s former parent undertaking, Railtrack Group PLC, entered into an agreement with Network Rail Limited and Network Rail Holdco Limited (together ‘Network Rail’) for the sale and purchase of the entire issued share capital of Railtrack PLC. On 1 October the High Court ordered that Railtrack PLC be discharged from administration, which was the final condition precedent in the Network Rail sale agreement. The company became a subsidiary of Network Rail Limited on 3 October 2002. On 19 August 2002 the Company purchased the entire issued share capital of Railtrack (Spacia) Limited for a consideration of £17 million. 36
Page 1 and 2: IMPORTANT NOTICE Neither an audit n
Page 3 and 4: RAILTRACK PLC REGULATORY FINANCIAL
Page 5 and 6: RAILTRACK PLC DIRECTORS’ REVIEW M
Page 7 and 8: RAILTRACK PLC DIRECTORS’ REVIEW B
Page 9 and 10: RAILTRACK PLC STATEMENT OF DIRECTOR
Page 11 and 12: Basis of audit opinion We conducted
Page 13 and 14: RAILTRACK PLC PART A - STATEMENT OF
Page 15 and 16: RAILTRACK PLC PART B - STATEMENT OF
Page 17 and 18: RAILTRACK PLC STATEMENT OF ACCOUNTI
Page 25 and 26: RAILTRACK PLC DISCLOSURE STATEMENT
Page 35 and 36: RAILTRACK PLC APPENDIX A: RECONCILI
Page 37: RAILTRACK PLC APPENDIX C: RECONCILA
Page 41: RAILTRACK PLC SUPPLEMENTAL ZONAL EX

Regulatory Financial Statements for the year ended ... - Network Rail

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