1 Corporate information
LGT Business Connexions Private Limited was incorporated vide CIN U74999TN2016PTC112289 dated 31st August 2016 issued by
Registrar of Companies, Chennai. The company is engaged in diversified businesses of tour package operations and event
management services, working as travel agents and service agents for inbound and outbound tours, having registered office at New
No. 38, Old No. 44, First Floor, Brindavan Street Extn., West Mambalam,Chennai, Tamil Nadu-600033. The company was converted
into "Limited company" dated on 28th November 2024 vide CIN U74999TN2016PLC112289 under new name "LGT Business
Connextions Limited".
2 Basis of preparation of financial statements(Significant accounting policies & other explanatory notes)
a) Statement of compliance with the GAAP
These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (‘Indian
GAAP’) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, as applicable. The
financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments
which are measured at fair value.
b) Basis of measurement
The financial statements have been prepared using the historical cost convention, except for the following:
-certain financial assets and liabilities which have been measured at fair value
-The liability in respect of defined benefit plans is determined using the Projected Unit Credit Method, as prescribed under
Accounting Standard 15 (Revised 2005). This method considers the present value of future obligations based on employee service to
date and actuarial assumptions.
c) Use of estimates
The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements
and reported amounts of income and expense during the year. Examples of such estimates include provisions for doubtful receivables,
provision for income taxes, the useful lives of depreciable property, plant and equipment and provision for impairment. Future results
could differ due to changes in these estimates and the difference between the actual result and the estimates are recognised in the
period in which the results are known / materialise.
3 Foreign currency
a) Foreign currency transactions and balances.
Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency
monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate
prevailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and loss. Exchange
difference arising on a monetary item that, in substance, forms part of an enterprise’s net investments in a non-integral foreign
operation are accumulated in a foreign currency translation reserve.
4 Revenue recognition
a) Income from operations
Revenue from rendering of tour services is recognized when the services are rendered, and it is probable that the economic benefits
associated with the transaction will flow to the Company. Where the outcome of the service transaction cannot be reliably estimated,
revenue is recognized only to the extent of costs incurred that are expected to be recoverable.
b) Other income
Other income is recognized on a time proportion basis when it is probable that economic benefits will flow to the Company and the
amount can be measured reliably.
5 Taxes on income
The Company’s tax expense comprises both current and deferred tax and is accounted for in accordance with Accounting Standard 22
- Accounting for Taxes on Income, as notified under the Companies (Accounting Standards) Rules, 2006.
a) Current tax
Current tax is the amount of income tax payable in respect of taxable income for the year, determined in accordance with the
provisions of the Income-tax Act, 1961. It is recognized as an expense in the Statement of Profit and Loss for the period to which the
tax relates. Current tax assets and liabilities are measured at the amount expected to be paid to or recovered from the taxation
authorities, using the applicable tax rates and laws that have been enacted or substantively enacted as at the reporting date.
b) Deferred tax
Deferred tax is recognized on timing differences between the accounting income and taxable income that originate in one period and
are capable of reversal in one or more subsequent periods. Deferred tax liabilities are recognized for all taxable timing differences,
subject to the consideration of prudence. Deferred tax assets are recognized only to the extent there is reasonable certainty that
sufficient future taxable income will be available to realize such assets. Deferred tax is measured using the tax rates and laws that
have been enacted or substantively enacted by the reporting date. The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer reasonably certain that sufficient taxable income will be available to allow
the benefit of part or all of the deferred tax asset to be utilized.
6 Leases
a) Finance lease
Assets taken on finance lease are capitalised at fair value or net present value of the minimum lease payments, whichever is less.
Lease payments are apportioned between the finance charges and outstanding liability in respect of assets taken on lease.
b) Operating lease
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term are classified as
operating lease. Lease rent are recognized as an expense in the Statement of Profit and Loss on a straight line basis over the lease
term.
7 Impairment of assets
The Company assesses at each reporting date whether there is any indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. An asset is treated as impaired when its carrying amount exceeds
its recoverable amount, and the difference is recognised as an impairment loss in the Statement of Profit and Loss. Recoverable
amount is the higher of an asset’s net selling price and its value in use. Value in use is the present value of estimated future cash flows
expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Impairment losses recognised
in prior periods are reversed if there has been a change in the estimates used to determine the asset’s recoverable amount, subject to
the condition that the asset’s carrying amount after reversal does not exceed the carrying amount that would have been determined had
no impairment loss been recognised in prior periods. The Company follows the principles laid down in Accounting Standard 28 -
Impairment of Assets, as notified under the Companies (Accounting Standards) Rules, 2006.
8 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, balances with banks in current and deposit accounts, and other short-term, highly
liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value.
Cash and cash equivalents also include bank overdrafts that are repayable on demand and form an integral part of the Company’s cash
management. The Company considers investments with original maturities of three months or less from the date of acquisition to be
cash equivalents.
9 Property , plant and equipment.
a) Tangible assets
Property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses, if any.
Historical cost includes expenditure directly attributable to the acquisition of the asset and bringing it to its working condition for
intended use. Subsequent costs are capitalised only when it is probable that future economic benefits associated with the item will
flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the
Statement of Profit and Loss in the period in which they are incurred. The carrying amount of any component accounted for as a
separate asset is derecognised when replaced. Gains or losses arising from the retirement or disposal of assets carried at cost are
recognised in the Statement of Profit and Loss. Depreciation is provided on a straight-line basis over the estimated useful lives of the
assets. The useful lives are determined based on the nature of the asset, its expected usage, and the technical evaluation performed by
the management, and are aligned with the useful lives prescribed under Schedule II to the Companies Act, 2013. Where the
management’s estimate of the useful life differs from that prescribed in Schedule II, depreciation is charged based on the revised
estimate. Depreciation methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate.
The estimated useful lives of major asset classes are as follows:
Asset class Useful life
Computers 3 years
Furniture and fixtures 10 years
Office equipment 5 years
Vehicles 8 years
Plant and machinery 15 years
b) Intangible assets
Intangible assets acquired are recognised and measured collectively at cost on initial recognition. Following initial recognition, these
assets are carried at cost less accumulated amortization and accumulated impairment, if any, and are amortized on straight-line basis
over their estimated useful life. An Intangible Asset shall be recognised only if (a) it is possible that the expected future economic
benefits that are attributable to the asset will flow, (b) the cost of the asset can be measured reliably. Intangible assets are de¬
recognised on disposal or no future economic benefits are expected from their disposal.
The amortization period and the method are reviewed at each balance sheet date. If the expected useful life of the asset is significantly
different form the previous estimates, the amortization period is changed accordingly. If there has been a significant change in the
expected pattern of economic benefit from the asset, the method of amortization is changed to reflect the changed pattern.
10 Depreciation and Amortisation
Depreciation is provided on a straight-line basis over the estimated useful lives of the assets, in accordance with the provisions of
Schedule II to the Companies Act, 2013. The useful lives and residual values are reviewed at each reporting date and adjusted if
appropriate. 'Where the management’s estimate of the useful life of an asset, based on technical evaluation, differs from that
prescribed in Schedule II, depreciation is charged based on the revised estimate. Depreciation is calculated on the cost of assets, net of
residual value, and is allocated systematically over the useful life of the asset. Amortisation of intangible assets is also done on a
straight-line basis over their estimated useful lives.
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