www.pbr.co.in www.pbr.co.in Impact of IND-AS First Time Application on Financial Performance of Indian Metal Sector Companies Pacific Business Review International Volume 12 issue 12 June 2020 Abstract A notable and breakthrough change is made in India through transition from IGAAP to IND-AS in the financial reporting. Implementation of IND-AS introduced new concepts in accounting which lead to changes in the recognition, measurement, disclosure and presentation of the financial data. Thus, the present study is a small attempt to know the impact of implementation of IND-AS on the financial performance of the Indian companies. This study mainly aims to empirically evaluate the impact of IND-AS implementation on the financial performance of metal sector companies in India. This study has been conducted on top six companies of the metal sector of NSE-NIFTY for the financial year 2015-16 (whose financial reports are available as per both the accounting standards viz., IGAAP and IND-AS) for calculating the financial ratios. Afterwards, Kolmogorov-Smirnov and Shapiro-Wilk tests have been used for checking the normal distribution of data, on the basis of results of which Wilcoxon Signed Ranks test and Paired T- test have been employed for analyzing the data generated for the study. As per the results of Wilcoxon Signed Ranks test, three ratios of profitability viz. Return on Assets, Return on Equity and Return on Capital Employed of the selected companies have significant impact of IND-AS implementation. But the profitability of companies have no impact according to the results of Paired T-test. As per the results of both the tests, the liquidity, solvency and efficiency (except Inventory Turnover ratio) of selected companies have no significant impact of IND-AS implementation. Keywords: IGAAP, IND-AS, Financial performance, financial ratios, Paired T-test, Wilcoxon Signed Ranks test. Introduction Accounting standards are a set of rules and guidelines which are aimed at making the financial statements consistent, comparable and standardized. In India, accounting standards, known as IGAAP (Indian Generally Accepted Accounting Principles) are issued by Accounting Standards Board (ASB) established by Institute of Chartered Accountants of India (ICAI) in 1977. In the global business environment, companies need to present their financial statements as per a common set of accounting standards which will be globally accepted, as presentation of financial statements according to different frameworks leads to a confusion for Rakesh Kumar Assistant Professor Department of Accountancy & Law, Faculty of Commerce, Dayalbagh Educational Institute (Deemed University), Dayalbagh, Agra, India 48 Rishika Agarwal Research Scholar Department of Accountancy & Law, Faculty of Commerce, Dayalbagh Educational Institute (Deemed University), Dayalbagh, Agra, India