i. Corporate Information:
Radford Global Limited is public limited listed company. The Company
operates in the business of construction and real estate development,
Trading business and Manpower Recruitment services
ii. Basis of Accounting & Preparation of Financial Statements:
Preparation and presentation of financial statements of the company is
disclosed as per the revised Schedule VI notified under the Companies
Act, 1956 However, it has significant impact on presentation and
disclosures made in the financial statements. The Company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year. The financial statements
have been prepared under the historical cost convention in accordance
with the generally accepted accounting principles and the provisions of
the Companies Act, 1956 as adopted consistently by the Company.
Accounting policies not stated explicitly otherwise are consistent with
Generally Accepted Accounting Principles (GAAP). The Company generally
follows mercantile system of accounting and recognize significant items
of income and expenditure on accrual basis as a going concern.
iii. Use of Estimates:
The preparation of the financial statements in conformity with Indian
GAAP requires the management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure
of contingent liabilities on the date of the financial statements and
reported amounts of revenues and expenses for the year. The management
believes that the estimates used in preparation of the financial
statements are prudent and reasonable. Future results could differ due
to these estimates. Any revision to accounting estimates is recognized
prospectively in the current and future periods.
Investments are long term in the nature and stated at cost.
Inventories are stated at cost or net realisable value whichever is
vi. Employee Benefits:
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering
the services are classified as short term employee benefits. Benefits
such as salaries, wages, performance incentives etc. are recognized at
actual amounts due in the period in which the employee renders the
vii. Provisions, Contingent Liabilities & Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
event and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements. There is no contingent liability in the opinion
of the Management.
viii. Revenue recognition :
All income and expenditure items having a material bearing on the
financial statement are recognised on accrual basis.
ix. Taxes on income :
Provision for tax is made on the basis of the estimated taxable income
as per the provisions of the Income Tax Act, 1961 and the relevant
Finance Act, after taking into consideration judicial pronouncements
and opinions of the Company''s tax advisors.
Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
x. Earnings per Share:
Basic earnings per share is computed by dividing the profit/(loss)
after tax (including the post-tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year.Diluted earnings per share is computed by dividing the
profit/(loss) after tax (including the post-tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of shares
which could have been issued on the conversion of all dilutive
potential equity shares.