Impact of IND as on Financial Performance of Energy Companies Comparative Study of Selected Public and Private Sector Companies

Abstract

The switch from AS to IND AS in financial reporting marks a significant and game-changing shift in India. As in February, 2015 Ministry of Corporate Affairs notified the final roadmap for the adoption of IND AS in India. The implementation of IND AS introduced new accounting principles, which resulted in adjustments in the various aspects of the financial statements. These adjustments in the financial statements enhance data transparency and understandability which resulted into more disclosure of essential information in the financial statements for investors to better grasp that information. So this study is an endeavour to empirically check the impact of IND AS implementation on the financial performance of selected public and private sector energy companies and to comprehend the perceptions of the stakeholders regarding the financial statements prepared as per IND AS. The results of the study reveals that IND AS implementation haven t impacted financial performance of NTPC Ltd. at all. It has slightly impacted the financial performance of ONGC Ltd., while profitability and efficiency of PGCI Ltd. have been highly impacted by the implementation of IND AS. IND AS implementation have no significant impact on the financial performance of RI Ltd. and RINF Ltd. at all, but has impacted liquidity and solvency of TPC Ltd. The implementation of IND AS has no significant impact on the financial performance of Private Sector Energy Companies at all, but liquidity of Public Sector Energy Companies have been highly impacted by the implementation of IND AS. The examination of the perceptions of the stakeholders revealed that implementation of IND AS will provide professional opportunities to Indian professionals across the globe and the most important reason behind the adoption of IND AS was globalisation. The companies faced training and education of employees and professionals as the main challenge on IND AS adoption in India, but it benefitted them into transparent and high quality financial reporting. And stakeholders believe that all countries and regions should adopt a single set of accounting standards, but a cautious approach is necessary before adopting it. newline newline newline