Shoreline Mall p.l.c. - 391200FQG1FQ0DT1US42

Net movement in cash and cash equivalents

(18,309,354)

18,947,756

Cash and cash equivalents at the beginning of the year

20,080,216

1,132,460

Cash and cash equivalents at the end of the year (note 18)

1,770,862

20,080,216

Shoreline Mall p.l.c

19

Notes to the financial statements

30 April 2022

1.Company information and basis of preparation

ShorelineMallp.l.c(formerlyShorelineMallLimited)isapubliclimitedliability companyincorporatedinMaltawithregistrationnumber C84005.Theregistered addressofthecompanyisSuite407,Level4,BlockSCM01,SmartCityMalta,Ricasoli, Kalkara, Malta.

Thecompany’sprincipalactivityistodevelopandmanagetheShorelineMallandto developresidentialterracedhousesforresale,whichbothformpartofthedevelopment beingundertakeninSmartCityMalta(theShorelinesite)bythegroupofcompanies controlled by Shoreline Holdings Limited.

Thefinancialstatementshavebeenpreparedonthehistoricalcostbasisandin accordancewithInternationalFinancialReportingStandardsasadoptedbytheEU.The significant accounting policies adopted are set out below.

Thecompanyhasnotyetstartedtradingandasaresultregisteredalossfortheyearof EUR392,088(2021:EUR280,095).Thelossesincurredbythecompanyandtheshort-termcashflowrequirementshavebeenfinancedbytheimmediateparentcompanyand relatedparties,andsuchbalancesduetotheimmediateparentandrelatedpartiesare expectedtocontinuetoformpartofthecompany’sfinancingstructureastheneedarises. Inaprioryear,thecompanyraisedfundsthroughanissueofbondsontheMalteseStock Exchange (see note 15).

2.Significant accounting policies

Investment property under construction

Investmentpropertyalsoincludesright-of-useassetsintermsofIFRS16.The accountingpolicyforright-of-useassetsisincludedbelowintheSectionentitled ‘Leases’.

Propertiesinthecourseofconstructionforfutureuseasinvestmentpropertyare classifiedasinvestmentproperty.Existinginvestmentpropertythatisbeingredeveloped forcontinuedfutureuseasinvestmentpropertycontinuestobeclassifiedasinvestment property.

Investmentpropertyispropertyheldtoearnrentalsorforcapitalappreciationorboth. Investmentpropertyisrecognisedasanassetwhenitisprobablethatthefutureeconomic benefitsthatareassociatedwiththeinvestmentpropertywillflowtotheentityandthe costcanbemeasuredreliably.Investmentpropertyisinitiallymeasuredatcost,including transactioncosts.Forqualifyingassets,borrowingcostsarecapitalisedinaccordance withthecompany'saccountingpolicyonborrowingcosts.Subsequenttoinitial recognition,investmentpropertyisstatedatcostlessanyaccumulateddepreciationand any accumulated impairment losses.

Shoreline Mall p.l.c

20

Notes to the financial statements

30 April 2022

2.Significant accounting policies (continued)

Investment property under construction (continued)

Investmentpropertyisderecognisedondisposalorwhenitispermanentlywithdrawnfrom useandnofutureeconomicbenefitsareexpectedfromitsdisposal.Gainsorlosseson derecognitionrepresentthedifferencebetweenthenetdisposalproceeds,ifany,andthe carrying amount and are recognised in profit or loss in the period of derecognition.

Inventories - Properties held for development and resale

Inventoryalsoincludesright-of-useassetsintermsofIFRS16.Theaccountingpolicyfor right-of-use assets is included below in the Section entitled ‘Leases’.

Inventoriesarestatedatthelowerofcostandnetrealisablevalue.Costcomprises expenditureincurredinacquiringtheinventoriesandothercostsincurredinbringingthe inventoriestotheirpresentlocationandcondition.Thecostoffinishedgoodsandworkin progresscomprisesdirectmaterialsand,whereapplicable,directlabourcostsandan appropriateproportionofproductionoverheadsbasedonthenormallevelofactivity.For qualifyingassets,borrowingcostsarecapitalisedinaccordancewiththecompany's accountingpolicyonborrowingcosts.Netrealisablevaluerepresentstheestimatedselling priceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandthecosts to be incurred in marketing, selling and distribution.

Depreciation

Depreciationcommenceswhenthedepreciableassetsareavailableforuseandischarged toprofitorlosssoastowriteoffthecost,lessanyestimatedresidualvalue,overtheir estimated useful lives, using the straight-line method.

Right-of-useassetsaredepreciatedovertheshorterperiodoftheleasetermandtheuseful lifeoftheunderlyingasset.Ifaleasetransfersownershipoftheunderlyingassetorthe costoftheright-of-useassetreflectsthatthecompanyexpectstoexerciseapurchase option,therelatedright-of-useassetisdepreciatedovertheusefullifeoftheunderlying asset. The depreciation starts at the commencement date of the lease.

Forleaseholdlandright-of-useassetsclassifiedasinventoryforwhichitisreasonably certainthatthepurchaseoptionisgoingtobeexercised,theusefullifeistheexpected periodoftimefromthecommencementdateoftheleasetothedisposaloftheinventory. Theright-of-useassetclassifiedasinventoryisdepreciatedtotheleaseholdland’sresidual valuetotheextentthattheresidualvalueislowerthanthecarryingamountoftheright-of-useasset.Nodepreciationischargedonleaseholdlandright-of-useassetsclassifiedas investmentpropertyforwhichitisreasonablycertainthatthepurchaseoptionisgoingto be exercised.

Shoreline Mall p.l.c

21

Notes to the financial statements

30 April 2022

2.Significant accounting policies (continued)

Financial instruments

Financialassetsandfinancialliabilitiesarerecognisedwhenthecompanybecomesaparty tothecontractualprovisionsoftheinstrument.Financialassetsandfinancialliabilitiesare initiallyrecognisedattheirfairvalueplusdirectlyattributabletransactioncostsforall financial assets or financial liabilities not classified at fair value through profit or loss.

Financialassetsandfinancialliabilitiesareoffsetandthenetamountpresentedinthe statementoffinancialpositionwhenthecompanyhasalegallyenforceablerighttosetoff therecognisedamountsandintendseithertosettleonanetbasisortorealisetheassetand settle the liability simultaneously.

Financialassetsarederecognisedwhenthecontractualrightstothecashflowsfromthe financialassetsexpireorwhentheentitytransfersthefinancialassetandthetransfer qualifies for derecognition.

Financialliabilitiesarederecognisedwhentheyareextinguished.Thisoccurswhenthe obligation specified in the contract is discharged, cancelled or expires.

Anequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsofthe companyafterdeductingallofitsliabilities.Equityinstrumentsarerecordedatthe proceeds received, net of direct issue costs.

(i)Other receivables

Otherreceivablesareclassifiedwithcurrentassetsandarestatedattheirnominal value.Appropriateallowancesforestimatedirrecoverableamountsarerecognised in profit or loss as applicable.

(ii)Other borrowings

Subsequenttoinitialrecognition,otherborrowingsaremeasuredatamortisedcost usingtheeffectiveinterestmethodunlesstheeffectofdiscountingisimmaterial. Anydifferencebetweentheproceeds,netoftransactioncosts,andthesettlementor redemptionofotherborrowingsisrecognisedinprofitorlossoverthetermofthe borrowings,unlesstheinterestonsuchborrowingsiscapitalisedinaccordancewith the company’s accounting policy on borrowing costs.

(iii)Other payables

Otherpayablesareclassifiedwithcurrentliabilitiesandarestatedattheirnominal value,unlesstheeffectofdiscountingismaterial,inwhichcaseotherpayablesare measured at amortised cost using the effective interest method.

Shoreline Mall p.l.c

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Notes to the financial statements

30 April 2022

2.Significant accounting policies (continued)

Financial instruments (continued)

(iv)Amounts due from related companies

Thesefinancialassetsaresubsequentlymeasuredatamortisedcostastheymeetthe following conditions:

-thefinancialassetisheldwithinabusinessmodelwhoseobjectiveistohold financial assets in order to collect contractual cash flows; and

-thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocash flowsthataresolelypaymentsofprincipalandinterestontheprincipalamount outstanding.

Anassessmentofbusinessmodelsformanagingfinancialassetsisfundamentalto theclassificationofafinancialasset.TheCompanydeterminesthebusinessmodels atalevelthatreflectshowgroupsoffinancialassetsaremanagedtogetherto achieve a particular business objective.

Appropriateallowancesforexpectedcreditlosses(‘ECLs’)arerecognisedinprofit or loss in accordance with the Company’s accounting policy on ECLs.

Changesinthecarryingamountasaresultofforeignexchangegainsorlosses, impairment gains or losses and interest income are recognised in profit or loss.

Whereapplicable,interestincomeisrecognisedusingtheeffectiveinterestmethod.

Provisions

Provisionsarerecognisedwhenthecompanyhasapresentlegalorconstructiveobligation asaresultofapastevent,itisprobablethatanoutflowofresourcesembodyingeconomic benefitswillberequiredtosettletheobligationandareliableestimatecanbemadeofthe amountoftheobligation.Provisionsaremeasuredatthedirectors’bestestimateofthe expenditurerequiredtosettlethepresentobligationattheendofthereportingperiod.If theeffectofthetimevalueofmoneyismaterial,provisionsaredeterminedbydiscounting theexpectedfuturecashflowsatapre-taxratethatreflectscurrentmarketassessmentsof thetimevalueofmoneyand,whereappropriate,therisksspecifictotheliability. Provisions are not recognised for future operating losses.

Shoreline Mall p.l.c

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Notes to the financial statements

30 April 2022

2.Significant accounting policies (continued)

Estimated credit losses (ECLs)

TheCompanyrecognisesalossallowanceforECLsonthefollowing–financialassets measuredatamortisedcost.TheamountofECLsisupdatedateachreportingdatetoreflect changesincreditrisksincetheinitialrecognition.Forfinancialassetsotherthantrade receivablesandcontractassets,theCompanyusesthegeneralapproachandrecognises lifetimeECLwhentherehasbeenasignificantincreaseincreditrisksinceinitial recognition.If,ontheotherhand,thecreditriskonthefinancialinstrumenthasnot increasedsignificantlysinceinitialrecognition,theCompanymeasuresthelossallowance forthatfinancialinstrumentatanamountequalto12-monthECL(‘12mECL’).The assessmentofwhetherlifetimeECLshouldberecognisedisbasedonsignificantincreases inthelikelihoodorriskofadefaultoccurringsinceinitialrecognitioninsteadofon evidenceofafinancialassetbeingcredit-impairedatthereportingdateoranactualdefault occurring.TheCompanyrecognisesanimpairmentgainorlossinprofitorloss.Afinancial assetiscredit-impairedwhenoneormoreeventsthathaveadetrimentalimpactonthe estimated future cash flows of that financial asset have occurred.

Inassessingwhetherthecreditriskonafinancialinstrumenthasincreasedsignificantly sinceinitialrecognition,theCompanycomparestheriskofadefaultoccurringonthe financialinstrumentasatthereportingdatewiththeriskofadefaultoccurringonthe financialinstrumentasatthedateofinitialrecognition.Inmakingthisassessment,the Companyconsidersbothquantitativeandqualitativeinformationthatisreasonableand supportable,includinghistoricalexperienceandforward-lookinginformationthatis availablewithoutunduecostoreffortand,whereapplicable,thefinancialpositionofthe counterparties.

Forward-lookinginformationconsideredincludesthefutureprospectsoftheindustriesin whichtheCompany’sdebtorsorborrowersoperateaswellasconsiderationofvarious externalsourcesofactualandforecasteconomicinformationthatrelatetothedebtors’or borrowers’ core operations.

TheCompanyassumesthatthecreditriskonafinancialinstrumenthasnotincreased significantlysinceinitialrecognitionifthefinancialinstrumentisdeterminedtohavelow creditriskatthereportingdate.Accordingly,forthesefinancialassets,thelossallowance is measured at an amount equal to 12m ECL.

Shoreline Mall p.l.c

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Notes to the financial statements

30 April 2022

2.Significant accounting policies (continued)

Estimated credit losses (ECLs) (continued)

Evidencethatafinancialassetiscredit-impairedincludesobservabledataaboutthe following events:

a)significant financial difficulty of the issuer or the borrower;

b)a breach of contract, such as a default or past due event;

c)thelender(s)oftheborrower,foreconomicorcontractualreasonsrelatingtothe borrower’sfinancialdifficulty,havinggrantedtotheborroweraconcession(s)thatthe lender(s) would not otherwise consider;

d)itisbecomingprobablethattheborrowerwillenterbankruptcyorotherfinancial reorganisation; or

e)thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancial difficulties.

Forfinancialassets,thecreditlossisthedifferencebetweenallcontractualcashflowsthat areduetotheCompanyinaccordancewiththecontractandallthecashflowsthatthe Companyexpectstoreceive,discountedattheoriginaleffectiveinterestrate.ECLs representtheweightedaverageofcreditlosseswiththerespectiverisksofadefault occurring as the weights.

The measurement of ECLs is a function of:

-theprobabilityofdefault,whichisanestimateofthelikelihoodofdefaultoveragiven time horizon estimated at a point in time,

-thelossgivendefault,whichisanestimateofthelossarisingondefault,takinginto considerationthecashflowsexpectedfromcollateralandothercreditenhancements that are part of the contractual terms and are not recognised separately,

-theexposureatdefault,whichisanestimateoftheexposureatafuturedefaultdate, takingintoaccountexpectedchangesintheexposureafterthereportingdatethatare permittedbythecurrentcontractualterms,includingamortisationprofilesandearly repaymentoroverpayment;forloancommitmentsandfinancialguaranteecontracts,the exposureincludestheamountdrawndownasatthereportingdate,togetherwithany additional amounts expected to be drawn down in the future by default date.

Theassessmentoftheprobabilityofdefaultandlossgivendefaultisbasedonhistorical dataadjustedbyforward-lookinginformation,whereapplicable.Whereapplicable,the financial position of the counterparties is also taken into consideration.

Ifevidenceofasignificantincreaseincreditriskattheindividualinstrumentlevelisnot yetavailable,theCompanyperformstheassessmentofsignificantincreasesincreditrisk onacollectivebasisbyconsideringinformationon,forexample,agrouporsub-groupof financialinstruments.WheretheCompanydoesnothavereasonableandsupportable informationthatisavailablewithoutunduecostorefforttomeasurelifetimeECLonan individual instrument basis, lifetime ECL is measured on a collective basis.

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Notes to the financial statements

30 April 2022

2.Significant accounting policies (continued)

Impairment of other assets

Allassetsaretestedforimpairment.Attheendofeachreportingperiod,thecarrying amountofassetsisreviewedtodeterminewhetherthereisanyindicationorobjective evidenceofimpairment,asappropriate,andifanysuchindicationorobjectiveevidence exists, the recoverable amount of the asset is estimated.

Inthecaseofassetstestedforimpairment,therecoverableamountisthehigheroffair value(whichisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliability inanorderlytransactionbetweenmarketparticipantsatthemeasurementdate)lesscosts ofdisposal andvalueinuse(whichisthepresentvalueofthefuturecashflowsexpected tobederived,discountedusingapre-taxdiscountratethatreflectscurrentmarket assessmentofthetimevalueofmoneyandtherisksspecifictotheasset).Wherethe recoverableamountislessthanthecarryingamount,thecarryingamountoftheassetis reduced to its recoverable amount, as calculated.

Impairment losses are recognised immediately in profit or loss.

Animpairmentlossistheamountbywhichthecarryingamountofanassetexceedsits recoverable amount.

Inthecaseofotherassetstestedforimpairment,animpairmentlossrecognisedinaprior yearisreversediftherehasbeenachangeintheestimatesusedtodeterminetheasset’s recoverable amount since the last impairment loss was recognised.

Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheassetis increasedtotherevisedestimateofitsrecoverableamount,butsothattheincreased carryingamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined had no impairment loss been recognised for the asset in prior years.

Borrowing costs

Borrowing costs include the costs incurred in obtaining external financing.

Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionof qualifyingassets,whichareassetsthatnecessarilytakeasubstantialperiodoftimetoget readyfortheirintendeduseorsale,arecapitalisedfromthetimethatexpenditureforthese assetsandborrowingcostsarebeingincurredandactivitiesthatarenecessarytoprepare theseassetsfortheirintendeduseorsaleareinprogress.Borrowingcostsarecapitalised untilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduseorsale.Borrowing costsaresuspendedduringextendedperiodsinwhichactivedevelopmentisinterrupted. Allotherborrowingcostsarerecognisedasanexpenseinprofitorlossintheperiodin which they are incurred.

Shoreline Mall p.l.c

26

Notes to the financial statements

30 April 2022

2.Significant accounting policies (continued)

Borrowing costs (continued)

The interest expense on the lease liability is included in the cost of the relevant qualifying assetsclassifiedaseither(i)investmentpropertyor(ii)inventoriesforwhichrevenueis recognised at a point in time in accordance with the Company’s accounting policy.

Currency translation

Thefinancialstatementsofthecompanyarepresentedinitsfunctionalcurrency,theEuro, beingthecurrencyoftheprimaryeconomicenvironmentinwhichthecompanyoperates. Transactionsdenominatedincurrenciesotherthanthefunctionalcurrencyaretranslated attheexchangeratesrulingonthedateoftransaction.Monetaryassetsandliabilities denominatedincurrenciesotherthanthefunctionalcurrencyarere-translatedtothe functionalcurrencyattheexchangeraterulingatyear-end.Exchangedifferencesarising onthesettlementandonthere-translationofmonetaryitemsaredealtwithinprofitor loss.Non-monetaryassetsandliabilitiesdenominatedincurrenciesotherthanthe functionalcurrencythataremeasuredatfairvaluearere-translatedusingtheexchangerate rulingonthedatethefairvaluewasmeasured.Non-monetaryassetsandliabilities denominatedincurrenciesotherthanthefunctionalcurrencythataremeasuredintermsof historicalcostarenotre-translated.Exchangedifferencesarisingonthetranslationofnon-monetaryitemscarriedatfairvalueareincludedinprofitorlossfortheperiod,exceptfor differencesarisingonthere-translationofnon-monetaryitemsinrespectofwhichgains andlossesarerecognisedinothercomprehensiveincome.Forsuchnon-monetaryitems, anyexchangecomponentofthatgainorlossisalsorecognisedinothercomprehensive income.

Leases

Thecompanyassesseswhetherthecontractis,orcontains,aleaseatinceptionofa contract.Acontractis,orcontains,aleaseifthecontractconveystherighttocontrolthe use of an identified asset for a period of time in exchange for consideration.

Theleasetermisdeterminedasthenon-cancellableperiodofalease,togetherwithboth (a)periodscoveredbyanoptiontoextendtheleaseifthelesseeisreasonablycertainto exercisethatoption;and(b)periodscoveredbyanoptiontoterminatetheleaseifthelessee is reasonably certain not to exercise that option.

TheCompanyrecognisesaright-of-useassetandacorrespondingleaseliabilitywith respect to all lease arrangements in which it is the lessee, unless otherwise stated below.

Forshort-termleases(definedasleaseswithaleasetermof12monthsorless)andleases of low value assets, the Company applies the recognition exemption.

Shoreline Mall p.l.c

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Notes to the financial statements

30 April 2022

2.Significant accounting policies (continued)

Leases (continued)

Fortheseleases,theCompanyrecognisestheleasepaymentsasanoperatingexpenseon astraight-linebasisoverthetermoftheleaseunlessanothersystematicbasisismore representative of the pattern of the lessee’s benefit.

Wherearight-of-useassetandacorrespondingleaseliabilityisrecognised,thelease liabilityisinitiallymeasuredatthecommencementdateatthepresentvalueofthelease paymentsthatarenotpaidatthatdate,discountedbyusingtherateimplicitinthelease.If this rate cannot be readily determined, the Company uses its incremental borrowing rate.

Theleaseliabilityissubsequentlymeasuredbyincreasingthecarryingamounttoreflect interestontheleaseliability(usingtheeffectiveinterestmethod)andbyreducingthe carrying amount to reflect the lease payments made.

Theright-of-useassetsareinitiallymeasuredatthecommencementdateatcost,beingthe amountoftheinitialmeasurementofthecorrespondingleaseliability,leasepayments madeatorbeforethecommencementday,lessanyleaseincentivesreceivedandanyinitial directcosts.Theright-of-useassetsaresubsequentlymeasuredatcostlessaccumulated depreciationandimpairmentlosses.TheCompanyappliestheaccountingpolicyentitled ‘Depreciation’andtheaccountingpolicyentitled‘Impairmentofotherassets’todetermine and to measure the extent of any impairment losses on the right-of-use assets.

Inthestatementoffinancialposition,right-of-useassetsthatdonotmeetthedefinitionof investmentpropertyareincludedwithinInventories(beingthesamelineitemasthat withinwhichthecorrespondingunderlyingassetswouldbepresentediftheywereowned). Inthestatementoffinancialposition,right-of-useassetsthatmeetthedefinitionof investmentpropertyarepresentedwithinvestmentproperty.Inthestatementoffinancial position, lease liabilities are included separately from other liabilities.

Inthestatementofprofitorlossandothercomprehensiveincome,interestexpenseonthe leaseliabilityispresentedseparatelyfromthedepreciationchargefortheright-of-use asset.Inthestatementofcashflows,cashpaymentsfortheprincipalportionofthelease liabilityarepresentedwithinfinancingactivitiesandcashpaymentsfortheinterestportion oftheleaseliabilityarepresentedwithinoperatingactivities.Short-termleasepayments, paymentsforleasesoflowvalueassetsandvariableleasepaymentsnotincludedinthe measurement of the lease liability are included within operating activities.

Theinterestexpenseontheleaseliabilityisaccountedforinaccordancewiththe Company’s accounting policy entitled ‘Borrowing costs’.

Shoreline Mall p.l.c

28

Notes to the financial statements

30 April 2022

2.Significant accounting policies (continued)

Taxation

Currentanddeferredtaxisrecognisedinprofitorloss,exceptwhenitrelatestoitems recognisedinothercomprehensiveincomeordirectlyinequity,inwhichcasethecurrent anddeferredtaxisalsodealtwithinothercomprehensiveincomeorinequity,as appropriate.

Currenttaxisbasedonthetaxableresultfortheyear.Thetaxableresultfortheyeardiffers fromtheresultasreportedinprofitorlossbecauseitexcludesitemswhicharenon-assessableordisallowedanditfurtherexcludesitemsthataretaxableordeductibleinother years.Itiscalculatedusingtaxratesthathavebeenenactedorsubstantivelyenactedby the end of the reporting period.

Deferredtaxisaccountedforusingthebalancesheetliabilitymethodinrespectof temporarydifferencesarisingfromdifferencesbetweenthecarryingamountofassetsand liabilitiesinthefinancialstatementsandthecorrespondingtaxbasesusedinthe computation of taxable profit.

Deferredtaxliabilitiesaregenerallyrecognisedforalltaxabletemporarydifferencesand deferredtaxassets,arerecognisedtotheextentthatitisprobablethattaxableprofitswill be available against which deductible temporary differences can be utilised.

Deferredtaxiscalculatedatthetaxratesthatareexpectedtoapplytotheperiodwhenthe assetisrealisedortheliabilityissettled,basedontaxratesthathavebeenenactedor substantively enacted by the end of the reporting period.

Currenttaxassetsandliabilitiesareoffsetwhenthecompanyhasalegallyenforceable righttosetofftherecognisedamountsandintendseithertosettleonanetbasis,orto realise the asset and settle the liability simultaneously.

Deferred tax assets and liabilities are offset when the company has a legally enforceable right to set off its current tax assets and liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank.

Shoreline Mall p.l.c

29

Notes to the financial statements

30 April 2022

3.Judgementsinapplyingaccountingpoliciesandkeysourcesofestimation uncertainty

Intheprocessofapplyingthecompany’saccountingpolicies,managementhasmadeno judgementswhichcansignificantlyaffecttheamountsrecognisedinthefinancial statementsand,attheendofthereportingperiod,therewerenokeyassumptions concerningthefuture,oranyotherkeysourcesofestimationuncertainty,thathavea significantriskofcausingamaterialadjustmenttothecarryingamountsofassetsand liabilities within the next financial period, other than as described below.

AllocationofcostseligibleforcapitalisationbetweenInvestmentpropertyunder construction and Inventory under construction

DuringtheconstructionphaseoftheShorelineSite,thecompanyincurscertaincostswhich areeligibleforcapitalisationwhichrelatetoboththeinvestmentpropertyunder construction,asdescribedinnote8,aswellastheinventoryunderconstruction,as describedinnote10.Inthecurrentyear,thecompanyreassessedtheapplicableallocation techniqueandconcludedthatinthecircumstancesexistingduringtheyear,atechnique basedontheareaofthebuildingsbeingconstructed,asestimatedbythecompany’s appointedexpertsinaccordancewiththeapprovedplans,ismorerepresentativeofthe allocationofthecostseligibleforcapitalisationbetweenthetwodifferentcategoriesof assetsunderconstruction.In2021and2020,allocationtechniquewasbasedonvolumeof thebuildingsandestimatedsalesvalueofthecompletedcomplex,respectively.Asaresult ofthechangeincurrentyear,EUR55,774wasre-allocatedfrominvestmentpropertyunder constructiontoinventoryunderconstruction,whereaschangeinpreviousyear, EUR495,059wasre-allocatedfrominventoryunderconstructiontoinvestmentproperty underconstruction.Theamountoftheeffectinfutureperiodsisnotdisclosedbecause estimating it is impracticable.

4.InitialApplicationofanInternationalFinancialReportingStandardand International Financial Reporting Standards in Issue but not yet Effective

Initial Application of an International Financial Reporting Standard

In the current year, the Company has applied the following:

IFRS 16 Amendment – Covid-19-Related Rent Concessions beyond 30 June 2021

TheAmendmentspermitalesseetoapplythepracticalexpedientregardingCOVID-19-relatedrentconcessionstorentconcessionsforwhichanyreductioninleasepayments affectsonlypaymentsoriginallydueonorbefore30June2022(ratherthanonlypayments originallydueonorbefore30June2021).ThisAmendmentisapplicableasfrom1April 2021forfinancialyearsstarting,atthelatest,onorafter1January2021.Norent concessions were granted during the year.

Shoreline Mall p.l.c

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Notes to the financial statements

30 April 2022

4.InitialApplicationofanInternationalFinancialReportingStandardand InternationalFinancialReportingStandardsinIssuebutnotyetEffective (continued)

Initial Application of an International Financial Reporting Standard (continued)

AmendmentstoIFRS9,IAS39,IFRS7,IFRS4andIFRS16-InterestRateBenchmark Reform – Phase 2

Theamendmentsaddressissuesthatmightaffectfinancialreportingwhenanexisting interestratebenchmarkisactuallyreplaced.Inrespectofthemodificationoffinancial assets,financialliabilitiesandleaseliabilities,theIASBintroducedapracticalexpedient formodificationsrequiredbythereform(modificationsrequiredasadirectconsequence oftheinterbankofferedrates(IBOR)reformandmadeonaneconomicallyequivalent basis).Thesemodificationsareaccountedforbyupdatingtheeffectiveinterestrate.All othermodificationsareaccountedforusingthecurrentIFRSrequirements.These amendmentsenableentitiestoreflecttheeffectsoftransitioningfromIBORtoalternative benchmarkinterestrates(alsoreferredtoas‘riskfreerates’orRFRs)withoutgivingrise toaccountingimpactsthatwouldnotprovideusefulinformationtousersoffinancial statements.TheCompanydoesnothaveanyfinancialinstrumentsorleasecontractswith such interest rates.

International Financial Reporting Standards in Issue but not yet Effective

Atthedateofapprovalofthesefinancialstatements,anumberofInternationalFinancial ReportingStandardswereeithernotyetendorsedbytheEuropeanUnionorwerenotyet effective during the current year.

IAS 1 Amendments – Classification of Liabilities as Current or Non-current

Theamendmentsaffectonlythepresentationofliabilitiesinthestatementoffinancial position—nottheamountortimingofrecognitionofanyasset,liabilityincomeor expenses, or the information that entities disclose about those items. They:

•clarifythattheclassificationofliabilitiesascurrentornon-currentshouldbebased onrightsthatareinexistenceattheendofthereportingperiodandalignthe wordinginallaffectedparagraphstorefertothe"right"todefersettlementbyat leasttwelvemonthsandmakeexplicitthatonlyrightsinplace"attheendofthe reporting period" should affect the classification of a liability; and

•clarifythatclassificationisunaffectedbyexpectationsaboutwhetheranentitywill exercise its right to defer settlement of a liability; and

•makeclearthatsettlementreferstothetransfertothecounterpartyofcash,equity instruments, other assets or service.

Theeffectivedatewasdeferredtofinancialperiodscommencingonorafter1January 2023 by virtue of the July 2020 Amendments.

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Notes to the financial statements

30 April 2022

4.InitialApplicationofanInternationalFinancialReportingStandardand InternationalFinancialReportingStandardsinIssuebutnotyetEffective (continued)

International Financial Reporting Standards in Issue but not yet Effective (continued)

IAS 1 Amendments – Disclosure of Accounting Policies

The amendments are intended to help preparers in deciding which accounting policies to disclose in their financial statements. The amendments amend IAS 1 in the following ways:

•An entity is now required to disclose its material accounting policy information instead of its significant accounting policies;

•several paragraphs are added to explain how an entity can identify material accounting policy information and to give examples of when accounting policy information is likely to be material;

•the amendments clarify that accounting policy information may be material because of its nature, even if the related amounts are immaterial;

•the amendments clarify that accounting policy information is material if users of an entity’s financial statements would need it to understand other material information in the financial statements; and

•the amendments clarify that if an entity discloses immaterial accounting policy information, such information shall not obscure material accounting policy information.

The amendments are applicable for financial periods commencing on or after 1 January 2023.

Amendments to IAS 37 - Onerous contracts – cost of fulfilling a contract

The amendments deal with costs a company should include as the cost of fulfilling a contract when assessing whether a contract is onerous. The amendments are applicable for financial periods commencing on or after 1 January 2022.

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32

Notes to the financial statements

30 April 2022

4.InitialApplicationofanInternationalFinancialReportingStandardand InternationalFinancialReportingStandardsinIssuebutnotyetEffective (continued)

International Financial Reporting Standards in Issue but not yet Effective (continued)

Amendments to IAS 8 - Definition of Accounting Estimates

Theamendmentsareintendedtohelpentitiesdistinguishbetweenaccountingpoliciesand accountingestimates.ThechangestoIAS8focusentirelyonaccountingestimatesand clarify the following:

•Thedefinitionofachangeinaccountingestimatesisreplacedwithadefinitionof accountingestimates.Underthenewdefinition,accountingestimatesare“monetary amounts in financial statements that are subject to measurement uncertainty”

•Entitiesdevelopaccountingestimatesifaccountingpoliciesrequireitemsinfinancial statements to be measured in a way that involves measurement uncertainty.

•TheBoardclarifiesthatachangeinaccountingestimatethatresultsfromnew informationornewdevelopmentsisnotthecorrectionofanerror.Inaddition,the effectsofachangeinaninputorameasurementtechniqueusedtodevelopan accountingestimatearechangesinaccountingestimatesiftheydonotresultfromthe correction of prior period errors.

•Achangeinanaccountingestimatemayaffectonlythecurrentperiod’sprofitorloss oftheprofitorlossofboththecurrentperiodandfutureperiods.Theeffectofthe changerelatingtothecurrentperiodisrecognisedasincomeorexpenseinthecurrent period.Theeffect,ifany,onfutureperiodsisrecognisedasincomeorexpenseinthose future periods.

Theseamendmentsareapplicableforfinancialperiodscommencingonorafter 1 January 2023.

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Notes to the financial statements

30 April 2022

4.InitialApplicationofanInternationalFinancialReportingStandardand InternationalFinancialReportingStandardsinIssuebutnotyetEffective (continued)

International Financial Reporting Standards in Issue but not yet Effective (continued)

AmendmentstoIAS12-DeferredTaxrelatedtoAssetsandLiabilitiesarisingfroma Single Transaction

Theaimoftheamendmentsaretoreducediversityinthereportingofdeferredtaxon leases and decommissioning obligations.

PriortotheAmendments,therehadbeensomeuncertaintyaboutwhethertheIAS12 exemptionfromrecognisingdeferredtaxappliedtotransactionsforwhichcompanies recognisebothanassetandaliability.Theamendmentsclarifythattheexemptiondoes not apply and that companies are required to recognise deferred tax on such transactions.

Anentityappliestheamendmentstotransactionsthatoccuronorafterthebeginningof theearliestcomparativeperiodpresented.Italso,atthebeginningoftheearliest comparativeperiodpresented,recognisesdeferredtaxforalltemporarydifferences relatedtoleasesanddecommissioningobligationsandrecognisesthecumulativeeffect ofinitiallyapplyingtheamendmentsasanadjustmenttotheopeningbalanceofretained earnings (or other component of equity, as appropriate) at that date.

Theseamendmentsareapplicableforfinancialperiodscommencingonorafter1January 2023.

Thedirectorsareintheprocessofassessingtheimpact,ifany,oftheaboveonthe Company’sfinancialstatements.Thedirectorsanticipatethattheadoptionoftheother InternationalFinancialReportingStandardsthatwereinissueatthedateofauthorisation ofthesefinancialstatementsbutnotyeteffectivewillhavenomaterialimpactonthe financial statements of the Company in the period of initial application.

Shoreline Mall p.l.c

34

Notes to the financial statements

30 April 2022

5.Loss before tax

Theanalysisoftheamountsthatarepayabletotheauditorsandthatarerequiredtobe disclosed is as follows:

2022

2021

EUR

Total remuneration payable to the company’s auditor for the audit of the company’s financial statements

14,250

13,500

Tax compliance

2,500

610

Total fees payable to the company’s auditor for non-audit services other than tax compliance and assurance services

-

42,000

Assurance

-

5,500

16,750

61,610

6.Staff costs and employee information

2022

2021

EUR

Staff costs

Wages and salaries

60,812

27,812

Recharged by fellow subsidiary

271,177

159,957

331,989

187,769

The above costs are capitalised within the line item Investment Property under construction and inventory under construction in note 8 and note 10 respectively.

The average number of employees during the year was made up as follows:

2022

2021

EUR

Administrative

1

7.Key management personnel compensation

2022

2021

EUR

Short-term benefits:

Directors emoluments

24,000

Shoreline Mall p.l.c

35

Notes to the financial statements

30 April 2022

7.Key management personnel compensation (continued)

Other services rendered by directors, as paid and recorded in a group related company, as shown below based on an allocation deemed commensurate to the services received by the Company, are as follows:

8.Investment property under construction

Right-of-Use Assets (Land)

Buildings

Total

EUR

Cost

At 01 May 2020

7,083,148

4,302,657

11,385,805

Additions during the year

-

2,612,896

Reallocation from inventory

(note 3)

-

495,059

Capitalised interest on lease liabilities

-

4,877

Other capitalised finance costs

-

1,319,162

At 30 April 2021

7,083,148

8,734,651

15,817,799

Additions during the year

-

17,065,535

Reallocation to inventory

(note 3)

-

(55,774)

Capitalised interest on lease liabilities

-

5,239

Other capitalised finance costs

-

1,526,216

At 30 April 2022

7,083,148

27,275,868

34,359,016

2022

2021

EUR

Directors emoluments

6,611

15,110

Recharged by fellow subsidiary

79,148

53,005

85,759

68,115

Shoreline Mall p.l.c

36

Notes to the financial statements

30 April 2022

8.Investment property under construction (continued)

Thisconsistsoflandcosts,planningandstudies,architectural,excavation,project managementandconstructioncostsrelatingtotheconstructionofamallonaportionof landwhichwassub-leasedfromShorelineResidenceLimited.ShorelineResidence Limitedacquiredthelandunderatitleofsub-emphyteusisfromSmartCity(Malta) Limited.ShorelineContractingLimited(anotherfellowsubsidiary)ismanagingallthe constructionarrangementsrelatingtotheconstructionofTheMall.TheShorelineMall project is expected to be completed by 2023.

Theportionoftheright-of-useassetoftheleaseholdlandallocatedtotheinvestment propertyhasbeenarrivedatbasedonasaleandassignmentdeedthattookplacebetween ShorelineResidenceLimitedandathirdparty.Followingwhich,asaleandassignment deedwasmadebetweenShorelineResidenceLimitedandthecompany.Thislatter assignmentwasbasedonavaluationfromaprofessionallyqualifiedvalueronthebasis ofmarketvaluethatreflectsrecenttransactionsforsimilarpropertiesasadjustedtothe reflect inputs specific to the property.

Thecarryingamountofthecompany’slandwithininvestmentpropertyincludesEUR 7,083,148(2021–EUR7,083,148)inrespectofright-of-useassets,representingthe company’stemporaryemphyteusisoftheleaseholdlandoverwhichthebuildingsthatare alsoincludedwithininvestmentpropertyarebeingconstructed.Thecompany,aslessee, hastheoptiontoeffectivelypurchasethelandbyconvertingtheemphyteusisfrom temporarytoperpetualandsimultaneouslyredeemingtheperpetualemphyteusis.The companyisreasonablycertainofexercisingthisoptionattheearliestopportunity,being thecompletionofconstructionor16January2025(beingtheperiodof5yearsandnine monthsfromthedateoftheAgreementbetweenShorelineResidenceLimitedand SmartCity(Malta)Limited),whicheveroccursthelatest.Sincethecompanyexpectsto havecompletedconstructionbynotlaterthan16January2025,theleasetermwas determinedtoendonthisdateforthepurposesoftherequirementsofIFRS16Leases.Uponexerciseofsuchpurchaseoption,thecompanywillreclassifythecarryingamount ofright-of-useassetsatthatdatetoinvestmentpropertythatisdirectlyownedbythe company.

BorrowingcostsamountingtoEUR5,239(2021-EUR4,877)andcomprisingintereston theleaseliabilitieswerecapitalisedduringtheperiodintothecostofthebuildings,based ontheborrowingrateof4%.FurtherborrowingcostsamountingtoEUR1,546,835 (2021–EUR1,319,162)andcomprisinginterestonthedebtsecuritiesinissuewerealso capitalised during the period into the cost of the buildings.

Shoreline Mall p.l.c

37

Notes to the financial statements

30 April 2022

8.Investment property under construction (continued)

Intheprioryear,thefairvalueoftheinvestmentpropertywasarrivedatonthebasisofa valuationcarriedoutbyanindependentprofessionallyqualifiedvaluer.Thefairvalueof theinvestmentpropertyasat30April2021amountedtoEUR21,000,000,aftertakinginto considerationthelevelofconstructionofthepropertyasattheendofthereportingperiod.

Thevaluationwaspreparedonthebasisofacomparativevaluationmethodologywith similarpropertiesadjustedtoreflectcurrentinputsandconditionsthatarespecifictothe propertyinitscurrentstate,includingthevalueofthedevelopmentcostsincurredasat theendofthereportingperiod.Therehasbeennochangetothevaluationtechnique during the year, as further disclosed below.

Duringthecurrentyear,theCompanyhasassessedboththeeconomicandfinancial conditionsaswellastheconstructionenvironmentinwhichitoperatesagainstthe conditionsandtheinputsoftheprioryear.Basedonthisassessment,thedirectors concludedthatthefairvalueoftheinvestmentpropertyasat30April2022amountedto EUR39,541,216aftertakingintoconsiderationtheadditionaldevelopmentcostsincurred during the current year.

ThefairvaluemeasurementisclassifiedasaLevel3measurementwithinthefairvalue hierarchy.

Inestimatingthefairvalueoftheinvestmentproperty,thehighestandbestuseisits current use.

9.Other receivables

2022

2021

EUR

Other receivables

81,162

143.696

Prepayments and deposits paid

40,939

33,575

Accrued interest receivable

-

5,042

122,101

182,313

Shoreline Mall p.l.c

38

Notes to the financial statements

30 April 2022

10.Inventory under construction

Right-of-use assets (Land)

Buildings

Total

EUR

Cost

At 30 April 2020

6,071,270

1,473,808

7,545,078

Additions during the year

-

986

Reallocation to investment

property under construction (note 3)

-

(495,059)

Capitalisedinterestonlease liabilities

-

1,063

Other capitalised finance cost

-

163,857

Balance at 30 April 2021

6,071,270

1,144,655

7,215,925

Additions during the year

-

1,624,254

Reallocation from investment property under construction (note 3)

-

55,774

Capitalised interest on lease liabilities

-

675

Other capitalised finance cost

-

225,457

Balance at 30 April 2022

6,071,270

3,050,815

9,122,085

Thisamountincludescostofdevelopmentofresidentialunitsandresidentialparking spacesforsaleintheordinarycourseofbusinessonaportionoflandwhichwassub-leasedfromShorelineResidenceLimited.ShorelineResidenceLimitedacquiredtheland underatitleofsub-emphyteusisfromSmartCity(Malta)Limited.ShorelineContracting Limited(anotherfellowsubsidiary)ismanagingalltheconstructionarrangementsrelating to the construction of The Mall.

Inventoriesareexpectedtoberecoveredaftermorethantwelvemonths.Thisisconsidered to be the normal operating cycle of the company.

TheresidentialparkingspaceshavebeencommittedtoShorelineResidenceLimited.In thisregard,thelatterpartyhasenteredintopromiseofsaleagreementswiththirdparties duringtheyearunderreviewandtheprioryearandthetransactionpriceallocatedto performanceobligationsthataretotallyorpartiallyunsatisfiedasattheendofthe reportingperiodinrelationtotheseparkingspacesamountstoEUR3,093,594(2021- EUR 2,797,594). The final deeds of sale are expected to occur after 31 December 2024.

Shoreline Mall p.l.c

39

Notes to the financial statements

30 April 2022

10.Inventory under construction (continued)

Thecarryingamountofthecompany’slandwithininventoryincludesEUR6,071,270(2021–EUR6,071,270)inrespectofright-of-useassets,representingthecompany’s temporaryemphyteusisoftheleaseholdlandoverwhichthebuildingsthatarealso includedwithininventoryarebeingconstructed.Thecompany,aslessee,hastheoption toeffectivelypurchasethelandbyconvertingtheemphyteusisfromtemporaryto perpetualandsimultaneouslyredeemingtheperpetualemphyteusis.Thecompanyis reasonablycertainofexercisingthisoptionattheearliestopportunity,beingthe completionofconstructionor 16January2025(beingtheperiodof5yearsandninemonthsfromthedateofthe AgreementbetweenShorelineResidenceLimitedandSmartCity(Malta)Limited), whicheveroccursthelatest.Sincethecompanyexpectstohavecompletedconstruction bynotlaterthan 16January2025,theleasetermwasdeterminedtoendonthisdateforthepurposesofthe requirementsofIFRS16Leases.Uponexerciseofsuchpurchaseoption,thecompanywill reclassifythecarryingamountofright-of-useassetsatthatdatetoinventorythatisdirectly owned by the company.

BorrowingcostsamountingtoEUR675(2021–EUR1,063)andcomprisingintereston theleaseliabilitieswerecapitalisedduringtheperiodintothecostofthebuildings,based ontheborrowingrateof4%.FurtherborrowingcostsamountingtoEUR214,534(2021–EUR163,857)andcomprisinginterestonthedebtsecuritiesinissuewerealso capitalised during the period into the cost of the buildings.

11.Amounts due from group companies

IncludedintheyearendbalancesareamountspaidinadvancetoShorelineContracting Ltd, a group company, to be used for the construction of the project.

Nevertheless,theamountsduefromrelatedpartiesareinterest-free,payableondemand, denominatedinEURandhavenofixeddateforrepayment.Asdescribedinnote20, ShorelineContractingLtdholdsaperformanceguaranteefromathirdpartysub-contractor covering these amounts.

Intheprioryearthecompanyenteredintoanovationagreementwithagroupcompany. This is further described below in note 13.

2022

2021

EUR

Amounts due from related parties

12,967,982

15,561,506

Shoreline Mall p.l.c

40

Notes to the financial statements

30 April 2022

12.Other payables

13.Amounts due to group companies

Theamountsduetogroupcompaniesareunsecured,interest-free,denominatedinEUR andthecompanyhasnounconditionalrighttodefersettlementforatleast12months fromtheendofthereportingperiod.Theexpectationforsettlementis12monthsfrom thedateofthestatementoffinancialposition.Theconsiderationtobeprovidedin settlement may include offsets with amounts due to / from the same party.

Asat10July2020anamountofEUR2,000,000waspayabletotherelatedparty representingcostofworksovertheShorelineMallsiteforworkcarriedoutbytherelated party.Asatthesamedate,therelatedpartysubscribedtopartofthedebtsecuritiesissued duringtheyear,andasaresultanamountofEUR1,780,000wasreceivablebythe Companyfromtherelatedparty.Atthatsamedate,thecompanyenteredintoanovation agreement with the related party for the amount of EUR1,780,000.

2022

2021

EUR

Trade payables

81,873

40,092

Accrued interest

1,294,136

1,393,480

Other accruals

15,723

20,517

1,391,732

1,454,089

2022

2021

EUR

Amounts due to group companies

-

128,738

Shoreline Mall p.l.c

41

Notes to the financial statements

30 April 2022

14.Lease liabilities

Furtherdisclosuresareprovidedinnote8InvestmentPropertyunderConstructionand note 10 Inventory under construction.

ThecompanyenteredintoanagreementwithShorelineResidenceLimited,intermsof whichitleasedaplotofundevelopedlandunderatemporaryemphyteusisexpiringon22 April2106,withtheoptionofeffectivelypurchasingthelanduponcompletionof constructionor 16January2025,whicheveroccursthelatest.Asdisclosedinnotes8and10,thecompany isreasonablycertainofexercisingthispurchaseoptionon16January2025.Asrequired byIFRS16Leases,theamountthatwillberequiredtoexercisethispurchaseoptionhas beenincludedasaleasepayment,andthereforealsoincludedwithinthemeasurementof the lease liability and corresponding right-of-use asset.

ThelandthatisthesubjectoftheAgreementshallbeusedsolelyandexclusivelyforthe constructionoftheShorelineComplex.ShorelineMallplcisprohibitedfromtransferring underanytitletheundevelopedlandand/orairspacewithoutfirstobtainingtheconsent ofSmartCity(Malta)Limited,whichconsentshallnotbewithheldiftheproposed transfereeisaninternationalinvestorofgoodrepute.ShorelineMallplcshallbeentitled tofreelytransferbyanytitlethedevelopedComplex,subjecttocertaintermsand conditions.

Thelessee’sweightedaverageincrementalborrowingrateusedtomeasurethecompany’s leaseliabilitiesis4%perannum.AllleaseobligationsaredenominatedinEUR.The company’sobligationsaresecuredontheassetstowhichtheyrelate.Thecompany’slease liabilities are analysed as follows:

2022

2021

EUR

Total undiscounted minimum lease payment payable in settlement of lease liabilities

163,884

170,211

Less: future finance charges

(15,975)

(21,888)

Present value of lease obligations

147,909

148,323

Less: amounts included in current liabilities

(431)

(414)

Amounts included in non-current liabilities

147,478

147,909

Shoreline Mall p.l.c

42

Notes to the financial statements

30 April 2022

14.Lease liabilities (continued)

ThetotalcashoutflowsforleasesamountedtoEUR6,328(2021:EUR6,328)duringthe year under review.

InaccordancewiththeCompany’saccountingpolicyonDepreciation,thereisno depreciationchargefortheyearonright-of-useassets,bothforthecurrentandprevious year.

The maturity analysis for lease liabilities is disclosed in note 22.

15.Debt securities in issue

ThecompanywasapprovedbytheListingAuthorityinMalta,on18June2020,forthe issuanceofEUR14,000,0004%SecuredBonds2026(seriesABonds)and EUR26,000,0004.5%SecuredBonds2032(seriesBBonds).Bothseriesbondswere issuedatanominalvalueofEUR100atpar.ThebondsubscriptionsclosedinJuly2020 withthebondsbeingfullysubscribedwithinterestpayableannuallyon1August, startingfrom1August2021.Theproceedswillbeutilisedforthedevelopmentofthe project.Theunutilisedproceedsasattheendofthereportingperiodsareheldwitha security trustee as further described in note 18.

2022

2021

EUR

Non-current

Series A Bonds – 4% and Series A bonds 4.5%

39,429,903

39,362,019

Face value of the bonds

Series A Bonds – 4%

14,000,000

Series A Bonds – 4.5%

26,000,000

40,000,000

Issue costs

686,251

Accumulated amortisation

(116,154)

(48,270)

Net book amount

570,097

637,981

Amortised cost

39,429,903

39,362,019

Shoreline Mall p.l.c

43

Notes to the financial statements

30 April 2022

15.Debt securities in issue (continued)

ASpecialHypotheconthevalueofthepropertyasclassifiedunderinvestmentproperty underconstructionandinventoryunderconstructioninnote8and10respectivelywas registeredinfavouroftheSecurityTrusteeforthebenefitoftheBondholdersin accordancewithitsobligationsunderSection4.6.1oftheSecuritiesNote.TheSpecial Hypothec secures the principal amount of the bond still outstanding and accrued interest.

AnamountofEUR1,225,2004%SecuredBonds2026(SeriesABonds)andEUR554,800 4.5%SecuredBonds2032(SeriesBBonds)wassubscribedbyagroupcompanyinthe prior year(seenote13).Asof30April2022,theamountofbondsstillheldbythegroup company amounted to EUR421,600 4% Secured Bonds 2026.

16.Share capital

2022 and 2021

AuthorisedIssuedCalled up and

paid

EUREUREUR

16,575,997 Ordinary A

shares of EUR1 each16,575,997 16,575,997 16,575,997

4,424,002 Ordinary A

shares of EUR1 each4,424,002 4,424,002 1,500,000

1 ordinary B share of EUR 11 1 1

---------------------------------------------------------------------------------------------

21,000,000 21,000,000 18,075,998

================================================

The holders of the ‘A’ and ‘B’ shares rank ‘pari passu’ in all respects.

17.Fair values of financial assets and financial liabilities

At30April2022and2021thecarryingamountsoffinancialassetsandfinancialliabilities classifiedwithcurrentassetsandcurrentliabilitiesrespectivelyapproximatedtheirfair valuesduetotheshorttermmaturitiesoftheseassetsandliabilities.Thefairvalueofthe debtsecuritiesinissueamountedtoEUR24,702,600(2021:EUR25,747,800)forthe4.5% SecuredbondsandEUR13,335,000(2021:EUR14,280,000)forthe4%Securedbonds. The financial liabilities in this paragraph exclude lease liabilities.

Shoreline Mall p.l.c

44

Notes to the financial statements

30 April 2022

18.Cash and cash equivalents

Cashandcashequivalentsincludedinthestatementofcashflowscomprisethefollowing amount in the statement of financial position:

Asat30April2022,theamountsheldwithasecuritytrusteeasincludedwithcashatbank amountedtoEUR1,283,936(2021–EUR4,362,503)andat30April2021,theseincluded the amounts held as fixed term deposit.

Cashatbankearnsinterestatfloatingratesbasedonbankdepositrates.Theinterestrate onthecashatbankin2022was0.0925%perannum(2021–0.0925%)andtheinterest rate on the fixed term deposit was 0.55% (2021 – 0.55%) for a three-month period.

19.Significant non-cash transactions

Inthepreviousyear,andasfurtherdisclosedinnote13,anovationagreementwasentered into with a related party covering an amount of EUR1,780,000.

AnamountofEUR627,656wassetoffbetweenrelatedpartybalancesinthecurrentyear.

AsdisclosedinNote20ShorelineContractingLtdentersintoagreementsdirectlywith contractorsforthedevelopmentandconstructionoftheprojectforwhichdepositsand advancepaymentswererequiredandincludedinNote11.AdditionstotheInvestment PropertyandInventoriesaremadeagainstthecorrespondingadvancepaymentsmadeto Shoreline Contracting Ltd.

AmountofEUR1,641,127inthestatementofcashflowsforthecomparativeperiodis reclassified from investing activities to operating activities to better reflect its nature.

20.Related party disclosures

TheparentandultimateparentcompaniesofShorelineMallplcareShorelineHoldings LimitedandJadePropertyInvestmentsLtdrespectively,whicharebothincorporatedin Malta.TheregisteredofficeofShorelineHoldingsLimitedisSuite407,Level4,Block SCM01,SmartCityMalta,Ricasoli,whilsttheregistredaddressofJadeProperty Investments Limited is The Hub Annex, St. Andrew Street, San Gwann.

ShorelineHoldingsLimited,theimmediateparentpreparesconsolidatedfinancial statements.Copiesoftheconsolidatedfinancialstatementsmaybeobtainedfromthe Malta Business Registry.

2022

2021

EUR

Cash at bank

1,770,862

9,080,216

Fixed term deposit

-

11,000,000

1,770,862

20,080,216

Shoreline Mall p.l.c

45

Notes to the financial statements

30 April 2022

20.Related party disclosures (continued)

ThedirectorsconsidertheultimatecontrollingpartytobeRyanEdwardOttowho, indirectly,owns61.82%(2021–61.82%)oftheissuedsharecapitaloftheimmediate parent company.

Asdisclosedinnote14,thecompanyhadpreviouslyenteredintoanagreementwith ShorelineResidenceLimited,intermsofwhichitleasedaplotofundevelopedlandunder a temporary emphyteusis. Further details are provided in this note.

Duringthecurrentperiodandthepriorperiod,fellowsubsidiariesandrelatedpartieshave transferredtoShorelineMallp.l.c,thecostsincurredinconnectionwiththedevelopment oftheMallproject(notes8and10).Thetotalcostofacquiringsuchassetsamountedto EUR 18,518,222 (2021 – EUR4,389,609).

IntheprioryearaContractofworksagreementwassignedwithShorelineContracting Ltd,arelatedparty,forthevalueofEUR55,765,921.ShorelineContractingLtdentersinto agreementsdirectlywithcontractorsforthedevelopmentandconstructionoftheproject forwhichdepositsandadvancepaymentswererequired.ShorelineContractingLtdhas obtainedanadvancepaymentguaranteeandaperformancesecurityguaranteefromits mainthird-partycontractors.TheseamountedtoEUR7,276,788(2021-EUR10,490,000) and EUR7,867,500 (2021- EUR7,867,500 ), respectively.

Other related party transactions are described in notes 11 and 13.

Key management personnel compensation is disclosed in note 7.

Thetermsandconditionsoftheamountsduefrom/torelatedpartiesatyearendare disclosedinnote11and13.Thetermsandconditionsinrespectoftherelatedparty balancesdonotspecifythenatureoftheconsiderationtobeprovidedinsettlement.No guarantees have been given or received, except as described above.

21.Capital commitments

2022

2021

EUR

Investment property under construction

24,906,284

41,669,407

Inventory under construction

3,745,969

5,661,876

Contracted but not provided for

28,652,253

47,331,283

Investment property under construction

413,634

978,291

Inventory under construction

1,500,000

1,450,000

Authorised but not contracted for

1,913,634

2,428,291

Shoreline Mall p.l.c

46

Notes to the financial statements

30 April 2022

21.Capital commitments (continued)

Thisrepresentsthetotalestimatedcapitalexpenditure,construction,developmentand otherdirectlyattributablecoststocompletetheShorelineMallProjectforwhich EUR12,967,982 (2021 – EUR15,683,915) are paid in advance as described in note 11.

22.Financial risk management

Theexposurestoriskandthewayrisksarise,togetherwiththecompany’sobjectives, policiesandprocessesformanagingandmeasuringtheserisksaredisclosedinmoredetail below.

Theobjectives,policiesandprocessesformanagingfinancialrisksandthemethodsused to measure such risks are subject to continual improvement and development.

Whereapplicable,anysignificantchangesinthecompany’sexposuretofinancialrisksor themannerinwhichthecompanymanagesandmeasurestheserisksaredisclosedbelow.

Wherepossible,thecompanyaimstoreduceandcontrolriskconcentrations. Concentrationsoffinancialriskarisewhenfinancialinstrumentswithsimilar characteristicsareinfluencedinthesamewaybychangesineconomicorotherfactors. Theamountoftheriskexposureassociatedwithfinancialinstrumentssharingsimilar characteristics is disclosed in more detail in the notes to the financial statements.

Credit risk

CreditriskreferstotheriskthatacounterpartywillcauseafinanciallossfortheCompany by failing to discharge an obligation. Credit risk is managed at a group level.

FinancialassetswhichpotentiallysubjecttheCompanytoconcentrationsofcreditrisk consistprincipallyofcashatbankincludingtheamountsheldbyasecuritytrusteeand amounts due from group companies.

CashatbankisplacedwithreliablefinancialinstitutionswithacreditratingofBBB (12mECL)andB(3mECL).Thedirectorshaveassessedandconcludedthatimpactof any expected credit losses are not material.

Financialassetsmeasuredatamortisedcostarepresentednetofanallowancefordoubtful debts.Inrelationtotheamountsduefromrelatedparties,withaparticularfocuson balancesduefromShorelineContractingLtdofEUR12,967,982(2021-EUR15,561,506),theintermediateparentcompany,ShorelineHoldingsLimited,providedanundertaking totheCompanywherebyitconfirmsthatintheeventthatShorelineContractingLtdis notapositiontosettletheamountduetotheCompanywhencalledupontodoso,the immediateparentwillsettleeitherdirectlyorthroughotherrelatedpartieswithinits control, the corresponding amounts due to the company as at that date.

Shoreline Mall p.l.c

47

Notes to the financial statements

30 April 2022

22.Financial risk management (continued)

Credit risk rating grades

TheCompany’smanagementestimatedthatasat30April2022,amountsduefromrelated partiesareconsideredtohavealowriskofdefaultanddonothaveanypastdueamounts. The provision for loss allowance (12m ECL) is therefore deemed to be not material.

Thecarryingamountoffinancialassetsrecordedinthefinancialstatements,whichisnet ofimpairmentlosses,representsthecompany’smaximumexposuretocreditriskwithout taking account of the value of any collateral obtained.

Liquidity risk

Thecompanyisexposedtoliquidityriskinrelationtomeetingfutureobligations associatedwithitsfinancialliabilities,whichcompriseprincipallyofotherpayables, amountsduetorelatedparties,leaseliabilitiesanddebtsecuritiesinissueasdisclosedin notes 13, 14, 15 and 15, respectively.

Thecompanymonitorsandmanagesitsrisktoashortageoffundsbymonitoringthe availabilityofraisingfundstomeetcommitmentsassociatedwiththedevelopmentofthe Shorelinesite.Thecompanyenjoysthesupportofitsimmediateparentandtheultimate shareholdersandthecompany’srelatedpartybalances’areexpectedtocontinuetoform partofthecompany’seffectivefinancingstructures.Thecompanyisthereforeconfident thatitwillbeinapositiontocontinuetomeetitscommitmentsasandwhentheyfalldue.

Liquidityislargelymanagedatgrouplevelwherebyfundsaretransferredwithinthegroup astheneedarises.Duringthepriorfinancialyear,theShorelineGroupcommencedthe processofreviewingitsfinancingarrangementstoensurethatitisinapositiontomeet itsshort-termoperationalandcashflowcommitments.Asdisclosedinnotes15,inthe prioryeartheCompanyraisedfundsthroughanissueofbondsontheMalteseStock Exchange.

Shoreline Mall p.l.c

48

Notes to the financial statements

30 April 2022

22.Financial risk management (continued)

Liquidity risk

Thefollowingmaturityanalysisshowstheremainingcontractualmaturitiesusingthe contractualundiscountedcashflowsonthebasisoftheearliestdateonwhichthecompany can be required to pay. The analysis includes both interest and principal cash flows.

On demand or within 1 year

2 years

3 years

4 years

5 years +

Total

EUR

2022

Non-derivative financial liabilities

Non-interest bearing

97,596

-

97,596

Fixed rate instruments

1,730,000

51,090,000

58,010,000

Lease liabilities

431

432

146,588

-

147,451

1,828,027

1,730,432

1,876,588

1,730,000

51,090,000

58,255,047

2021

Non-derivative financial liabilities

Non-interest bearing

189,347

-

189,347

Fixed rate instruments

1,393,480

1,730,000

52,820,000

59,403,480

Lease liabilities