Company registration number 04166047 (England and Wales)
LS GALLERIA LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
LS GALLERIA LIMITED
COMPANY INFORMATION
Director
Gaurav Bhikhubhai Kalyani
(Appointed 14 November 2023)
Company number
04166047
Registered office
86 Jermyn Street
6th Floor
London
England
SW1Y 6JD
Auditor
MUS Accountants Limited
268 Bath Road, Regus
Office 146
Slough
SL1 4DX
LS GALLERIA LIMITED
CONTENTS
Page
Director's report
1 - 2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
LS GALLERIA LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The director presents his annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of property investment business in the United Kingdom. No changes in the Company's principal activity are anticipated in the forseeable future.

Results and dividends

The results for the year are set out on page 6.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

No preference dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Gaurav Bhikhubhai Kalyani
(Appointed 14 November 2023)
Sanjay Kumar Agarwal
(Appointed 14 November 2023 and resigned 30 October 2024)
Leigh McCaveny
(Resigned 14 November 2023)
Land Securities Management Services Limited
(Resigned 14 November 2023)
LS Director Limited
(Resigned 14 November 2023)
Auditor

MUS Accountants Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LS GALLERIA LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

Strategic report

The Company has taken advantage of the exemption under s414B of the Companies Act 2006 not to prepare a Strategic Report.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Gaurav Bhikhubhai Kalyani
Director
18 July 2025
LS GALLERIA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LS GALLERIA LIMITED
- 3 -
Opinion

We have audited the financial statements of LS Galleria Limited (the 'company') for the year ended 31 March 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

LS GALLERIA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LS GALLERIA LIMITED (CONTINUED)
- 4 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:

 

We also considered potential fraud drivers: including financial or other pressures, opportunity, override of controls and personal or corporate motivations. We considered the programmes and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing journals, evaluating the business rationale of significant transactions outside the normal course of business and validating the appropriateness of internal controls and significant accounting estimations based on our fraud risk criteria;

LS GALLERIA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LS GALLERIA LIMITED (CONTINUED)
- 5 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

We obtained understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those related to the financial reporting framework, tax regulations in the jurisdictions in which the company operates.

Based on this understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: making enquiries of management, those responsible for legal and compliance procedures and reviewing other correspondence.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Muhammad Usman FCCA (Senior Statutory Auditor)
For and on behalf of MUS Accountants Limited, Statutory Auditor
Chartered Certified Accountants
268 Bath Road, Regus
Office 146
Slough
SL1 4DX
18 July 2025
LS GALLERIA LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
2024
2023
Notes
£
£
Revenue
4
8,678,942
8,171,033
Cost of sales
(6,224,531)
(5,411,009)
Gross profit
2,454,411
2,760,024
Net deficit on revaluation of investment properties
(8,310,944)
(10,142,957)
Administrative expenses
(121,067)
(263,500)
Exceptional items
5
6,322,836
-
0
Operating profit/(loss)
6
345,236
(7,646,433)
Investment revenues
8
6,743
20,000,000
Finance costs
9
(229,491)
(1,664,896)
Profit before taxation
122,488
10,688,671
Income tax expense
10
(125,408)
-
(Loss)/profit and total comprehensive income for the year
(2,920)
10,688,671
LS GALLERIA LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 7 -
31 March
31 March
1 April
2024
2023
2022
Notes
£
£
£
Non-current assets
Investment property
11
15,000,000
22,224,777
32,216,000
Current assets
Trade and other receivables
13
372,857
852,782
929,000
Cash and cash equivalents
1,232,992
-
0
-
1,605,849
852,782
929,000
Current liabilities
Trade and other payables
15
14,762,004
20,422,462
41,366,000
Current tax liabilities
125,408
-
0
-
Deferred revenue
16
154,260
1,088,000
899,000
15,041,672
21,510,462
42,265,000
Net current liabilities
(13,435,823)
(20,657,680)
(41,336,000)
Net assets
1,564,177
1,567,097
(9,120,000)
Equity
Called up share capital
17
35,000,002
35,000,002
35,000,002
Retained earnings
(33,435,825)
(33,432,905)
(44,120,002)
Total equity
1,564,177
1,567,097
(9,120,000)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 18 July 2025 and are signed on its behalf by:
Gaurav Bhikhubhai Kalyani
Director
Company registration number 04166047 (England and Wales)
LS GALLERIA LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 April 2022
35,000,002
(44,121,576)
(9,121,574)
Year ended 31 March 2023:
Profit and total comprehensive income
-
10,688,671
10,688,671
Balance at 31 March 2023
35,000,002
(33,432,905)
1,567,097
Year ended 31 March 2024:
Loss and total comprehensive income
-
(2,920)
(2,920)
Balance at 31 March 2024
35,000,002
(33,435,825)
1,564,177
LS GALLERIA LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
2,541,907
(18,183,104)
Interest paid
(229,491)
(1,664,896)
Net cash inflow/(outflow) from operating activities
2,312,416
(19,848,000)
Investing activities
Additions of investment property
(1,086,167)
(152,000)
Interest received
6,743
20,000,000
Net cash (used in)/generated from investing activities
(1,079,424)
19,848,000
Net increase in cash and cash equivalents
1,232,992
-
0
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
1,232,992
-
0
LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information

LS Galleria Limited is a private company limited by shares incorporated in England and Wales. The registered office is 86 Jermyn Street, 6th Floor, London, England, SW1Y 6JD. The company's principal activities and nature of its operations are disclosed in the director's report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

 

These financial statements for the year ended 31 March 2024 are the first financial statements that comply with IFRS. The date of transition is 1 April 2022. Information on the impact of first-time adoption of IFRS is given in note 20.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, except for the revaluation of . The principal accounting policies adopted are set out below.

1.2
Going concern

The director has at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Rental income, including fixed rental uplifts, is recognised in the Statement of Comprehensive Income on a straight-line basis over the term of the lease. Lease incentives being offered to occupiers enter into a lease, such an initial rent-free period or a cash contribution to fit out or similar costs, are an integral part of the net consideration for the use of the property and are therefore recognised on the same straight-line basis. Where the total consideration due under a lease is modified, for example, where a concession is granted to a tenant prior to the date the conceded rent falls due, the revised total amount due under the lease is recognised on a straight-line basis over the remaining term of the lease.

 

Contingent rents, being lease payments that are not fixed at the inception of a lease, for example turnover rents, are variable consideration and are recorded as income in the year in which they are earned. Where a single payment is received from tenant to cover both rent and service charge, the service charge component is separated and reported as service charge income.

 

The company's revenue with customers, as defined in IFRS 15 includes service charge income and other property related income.

 

Service charge income and management fees are recorded as income over time in the year in which the services are rendered. Revenue is recognised over time because the tenants benefit from the services as soon as they are rendered by the company. The actual service provided during each reporting period is determined using cost incurred as the input method.

 

Other property related income includes development and asset management fees. These fees are recognised over time, using time elapsed s the input method which measured the benefit simultaneously received and consumed by the customer. Over the period the development and asset management services are provided.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.4
Investment property

Investment properties are properties, either owned or leased by the Company, that are held either to earn rental income or for capital appreciation, or both. Investment properties are measured initially at cost including related transaction costs, and subsequently at fair value. Fair value is based on market value as determined by professional external valuer at each reporting date. The difference between the fair value of an investment property at the reporting date and its carrying amount prior to the re measurement in included in the Statement of Comprehensive Income as valuation surplus or deficit. Investment properties are presented on the Balance Sheet within non current assets.

 

Properties are treated as acquired one the Company assumes control of the property. Capital expenditure on properties consists of costs of a capital nature, including costs associated with developments and refurbishments. Where a property is being developed or undergoing a major refurbishment, interest costs associated with the direct expenditure on the property are capitalised. The interest capitalised is calculated using the Company's weighted average cost of borrowings. Interest is capitalised from the commencement of the development work until the date of practical completion. Certain internal staff and associated costs directly attributable to the management of major schemes are also capitalised.

 

When the Company begins to redevelop an existing investment property for continued future use as an investment property, the property continues to be held as an investment property. When the company begins to redevelop an existing investment property with a view to sell, the property is transferred to the trading properties and held as a current asset. The property is remeasured to fair value as the date of the transfer with any gain or loss being taken to the Statement of Comprehensive Income. The remeasured amount becomes the deemed cost at which the property is then carried in trading properties.

 

Properties are treated as disposed when control of the property is transferred to the buyer. Typically this will either occur on unconditional exchange or on completion. Where the completion is expected to occur significantly after exchange, or where the Company continues to have significant outstanding obligations after exchange, the control will not usually transferred to the buyer until completion.

 

The profit on disposal is determined as the difference between the sales proceeds and the carrying amount of the asset at the beginning of the accounting period plus capital expenditure to the date of disposal. The profit on disposal of investment properties is presented separately on the face of the Statement of Comprehensive Income.

1.5
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.7
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2
Adoption of new and revised standards and changes in accounting policies
Change in accounting policy

The Company has transitioned from FRS 101 (Reduced Disclosure Framework) to full IFRS for the year ended 31 March 2024. This change was made to enhance comparability with our international peers and to align with the reporting requirements of the ultimate parent entity in the Singapore. The policies applied under the previous accounting framework are not materially different to IFRS and have not impacted equity or profit or loss.

 

There was no impact on Company's reserve position at the date of transition from FRS 101 to IFRS.

Amendments to accounting standards

A number of new standards, amendments to standards and interpretations have been issued but are not yet effective for the Company, none of which are expected to have a material impact on the financial statements of the Company.

3
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Critical accounting estimates and judgements
(Continued)
- 15 -

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

 

a) Investment property valuation

 

The valuation of the Company's property portfolio has been undertaken by Independent valuers in accordance with the Royal Institute of Chartered Surveyors (RICS) valuation - Global Standards and UK supplement (together the "Red Book"). Real estate by its nature is a complex asset class with value determined by a range of factors overlaid by interpretation and judgmental assessment of market data; as such it is classified as Level 3 asset within IFRS. Factors affecting the valuation are on an individual property level and include the property type, location, tenure characteristics, quality of the asset and prospects for future rental revenue.

 

The Company's investment property valuation has been undertaken by valuers interpreting market evidence as available in reaching their conclusions on Fair Value, reflecting asset specific date provided by Management, making assumptions that tenure, tenancies, town planning and condition of buildings are as provided. As a result, the valuation the Company places on its property portfolio are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate, particularly in period of volatility or low transaction volume in the property market.

 

If the assumptions upon which the external valuer has based its valuations prove to be inaccurate, this may have an impact on the value of the Company's investment and trading properties, which could in turn have an effect on the Company's financial position and results.

 

b) Trade and other receivable

 

The Company is required to judge when there is sufficient objective evidence to require the impairment of individual trade receivable. It does this by assessing on a forward-looking basis, the expected credit losses associated with its trade receivables. A provision for impairment is made for the lifetime expected credit losses on initial recognition of the receivable. In determining the expected credit losses, the Company takes into account any recent payment behaviour and future expectations of likely default events (i.e. not making payment on the due date) based on individual customer credit ratings, actual or expected insolvency filings or company voluntary arrangements, likely deferrals of payments due, rent concessions and market expectations and trends in the wider macro-economic environment in which our customers operate. These assessments are made on customer by customer basis.

 

The Company's assessment of expected credit losses is inherently subjective due to the forward-looking nature of the assessment, in particular, the assessment of expected insolvency filings or company voluntary arrangements, likely deferral of payments due and rent concessions. As a result, the value of the provisions for impairment of the Company's trade receivables are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate.

LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
4
Revenue
2024
2023
£
£
Revenue analysed by class of business
Rental and service charge income
8,678,942
8,171,033

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

5
Exceptional items
2024
2023
£
£
Income
Exceptional item - amounts written off due to change of ownership
6,322,836
-

Exceptional items refer to the amounts written off in connection with the company's acquisition transaction.

6
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
-
0
7
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
-
0
-
0
8
Investment income
2024
2023
£
£
Interest income
Financial instruments measured at amortised cost:
Other interest income on financial assets
6,743
20,000,000
Income above relates to assets held at amortised cost, unless stated otherwise.
LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
9
Finance costs
2024
2023
£
£
Other interest payable
229,491
1,664,896
10
Income tax expense
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
125,408
-
0

Of the charge to current tax in relation to discontinued operations, £0 relates to tax on profits on ordinary activities and £0 arose on disposal.

The charge for the year can be reconciled to the profit per the income statement as follows:

2024
2023
£
£
Profit before taxation
122,488
10,688,671
Expected tax charge based on a corporation tax rate of 25.00% (2023: 19.00%)
30,622
2,030,847
Effect of expenses not deductible in determining taxable profit
104,512
1,927,153
Income not taxable
-
0
(3,958,000)
Permanent capital allowances in excess of depreciation
(9,726)
-
0
Taxation charge for the year
125,408
-
11
Investment property
2024
2023
£
£
Fair value
At 1 April 2023
22,224,777
32,215,777
Addition through subsequent expenditure
1,086,167
152,000
Fair value adjustment
(8,310,944)
(10,143,000)
At 31 March 2024
15,000,000
22,224,777

Investment property comprises The Galleria outlets. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 12 November 2024 by CBRE Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The historical cost of the investment properties is £135,112,167 (2023: £134,026,000). The difference between the carrying amount and historical cost is a deficit of £120,111,944 (2023: £111,801,000).

LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
12
Credit risk

The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the company's maximum exposure to credit risk.

The company does not hold any collateral or other credit enhancements to cover this credit risk.

13
Trade and other receivables
2024
2023
£
£
Trade receivables
989,652
965,001
Provision for bad and doubtful debts
(871,698)
(875,867)
117,954
89,134
Other receivables
4,500
4,500
Prepayments
250,403
759,148
372,857
852,782
14
Trade receivables - credit risk
Fair value of trade receivables

The director considers that the carrying amount of trade and other receivables differs from fair value as follows:

Carrying value
Fair value
2024
2023
2024
2023
£
£
£
£
Trade receivables net of allowances
117,954
89,134
-
0
-
0
Other debtors
4,500
4,500
-
0
-
Prepayments
250,403
759,148
-
0
-
0
372,857
852,782
-
0
-
0

No significant receivable balances are impaired at the reporting end date.

Movement in the allowances for impairment of trade receivables
2024
2023
£
£
Balance at 1 April 2023 and at 31 March 2024
871,698
875,867
LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
15
Trade and other payables
2024
2023
£
£
Trade payables
153,890
-
0
Amounts owed to fellow group undertakings
13,259,804
19,744,080
Accruals
962,774
288,006
Social security and other taxation
385,536
387,376
Other payables
-
3,000
14,762,004
20,422,462
16
Deferred revenue
2024
2023
£
£
Arising from rental income
154,260
1,088,000
All deferred revenues are expected to be settled within 12 months from the reporting date.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
35,000,002
35,000,002
35,000,002
35,000,002
18
Other leasing information
As lessor - operating leases

The Company earns rental income by leasing its investment properties to tenants under non-cancellable operating leases.

 

At balance sheet date, the Company had contracted with tenants to receive the following future minimum lease payments:

2024
2023
Maturity analysis of operating lease payments receivable:
£
£
Within one year
3,093,000
2,475,000
Year 2
2,514,000
2,057,000
Year 3
2,171,000
1,786,000
Year 4
1,784,000
1,612,000
Year 5
1,352,000
1,232,000
After 5 years
5,594,000
5,496,000
Total undiscounted lease payments receivable
16,508,000
14,658,000

The total of contingent rent recognised as income during the year was £158,014 (2023: £820,000)

LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
19
Capital risk management

The company is not subject to any externally imposed capital requirements.

20
Related party transactions

As at the balance sheet date, the amount owed to Incorp Property Holding UK Limited, the immediate parent company, was £13,259,804 (2023: £Nil). Interest is being charged on loan using the Bank of England base rate plus 1.5% margin. Loan is unsecured and repayable on demand.

21
Controlling party

During the year, the company was acquired by a new group from Land Security Group PLC.

 

The immediate parent company is Incorp Property Holding UK Limited.

 

The ultimate parent company and controlling party for the year ended 31 March 2024 was Incorp Pte Ltd, which is registered in Singapore. This is the largest parent company of the Group to consolidate these financial statements.

 

 

22
First time adoption of IFRS

The policies applied under the entity's previous accounting framework FRS 101 are not materially different to IFRS and have not impacted on equity or profit or loss.

 

There was no impact on company's reserve position at the date of transition from FRS 101 to IFRS.

23
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year before taxation
122,488
10,688,671
Adjustments for:
Finance costs
229,491
1,664,896
Investment income
(6,743)
(20,000,000)
Exceptional items - amounts written off due to change in ownership
(6,322,836)
-
0
Fair value loss on investment properties
8,310,944
10,142,957
Movements in working capital:
Decrease in trade and other receivables
479,925
76,218
Increase/(decrease) in trade and other payables
662,378
(20,944,846)
(Decrease)/increase in deferred revenue outstanding
(933,740)
189,000
Cash generated from/(absorbed by) operations
2,541,907
(18,183,104)
LS GALLERIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
24
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
-
1,232,992
1,232,992
1 April 2022
Cash flows
31 March 2023
Prior year:
£
£
£
2024-03-312023-04-01falsefalseCCH SoftwareCCH Accounts Production 2025.100Gaurav Bhikhubhai KalyaniSanjay Kumar AgarwalLeigh McCavenyLand Securities Management Services LimitedLS Director Limited041660472023-04-012024-03-3104166047bus:Director12023-04-012024-03-3104166047bus:Director22023-04-012024-03-3104166047bus:Director32023-04-012024-03-3104166047bus:Director42023-04-012024-03-3104166047bus:Director52023-04-012024-03-3104166047bus:RegisteredOffice2023-04-012024-03-31041660472024-03-3104166047core:ContinuingOperations2023-04-012024-03-31041660472022-04-012023-03-3104166047core:Exceptional12023-04-012024-03-3104166047core:Exceptional12022-04-012023-03-3104166047core:ContinuingOperations2022-04-012023-03-3104166047core:RetainedEarningsAccumulatedLosses2023-04-012024-03-3104166047core:RetainedEarningsAccumulatedLosses2022-04-012023-03-31041660472023-03-3104166047core:FairValue2024-03-3104166047core:FairValue2023-03-31041660472023-03-31041660472022-03-3104166047core:CurrentFinancialInstruments2024-03-3104166047core:CurrentFinancialInstruments2023-03-3104166047core:ShareCapital2024-03-3104166047core:ShareCapital2023-03-3104166047core:ShareCapital2022-03-3104166047core:RetainedEarningsAccumulatedLosses2024-03-3104166047core:RetainedEarningsAccumulatedLosses2023-03-3104166047core:RetainedEarningsAccumulatedLosses2022-03-3104166047core:OtherMiscellaneousReserve2022-03-3104166047core:FinancialInstrumentsFairValueThroughProfitOrLoss2023-04-012024-03-3104166047core:Held-to-maturityFinancialAssets2023-04-012024-03-3104166047core:Available-for-saleFinancialAssets2023-04-012024-03-3104166047core:CurrentFinancialInstrumentscore:ValueBeforeAllowanceForImpairmentLoss2024-03-3104166047core:CurrentFinancialInstrumentscore:ValueBeforeAllowanceForImpairmentLoss2023-03-3104166047core:CurrentFinancialInstrumentscore:AllowanceForImpairmentLoss2024-03-3104166047core:CurrentFinancialInstrumentscore:AllowanceForImpairmentLoss2023-03-3104166047bus:PrivateLimitedCompanyLtd2023-04-012024-03-3104166047bus:Audited2023-04-012024-03-3104166047bus:FullIFRS2023-04-012024-03-3104166047bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP