express

     VOL 1 ISSUE 2 JUL - DEC’16  IN THIS ISSUE

E-CATALYST IMPLEMENTATION OF
INDIAN ACCOUNTING
  THE TECHNOLOGY ACCELERATOR STANDARD 

"Any sufficiently advanced APPLICABILITY OF
technology is  indistinguishable IND AS TO NTPC
from magic." - Arthur C Clarke 
IMPACT AREAS OF
IND AS

MEETING THE
CHALLENGE

NTPC ONLINE TEST
APPLICATION

               
POWER PLANT
LINKAGES TO  COAL
MINES

ONLINE HOSPITAL
MANAGEMENT
APPLICATION

SUCCESSFUL • Impact on key
performance indicators
IMPLEMENTATION OF INDIAN like EBITA, Liquidity
ratios, net worth, debt
ACCOUNTING STANDARD (IND covenants and executive
compensation plan.
AS) COMPLIANT FINANCIAL
• Component approach
STATEMENTS. and replacement
accounting mandatory
Ministry of Corporate Affairs, Govt. of India for Property, Plant &
vide its notification dated 16th February 2015 Equipment.
has notified the Companies (Indian Accounting
Standards) Rules, 2015 commonly referred to • Financial Instruments
accounting & extensive
as IndAS. India has chosen a path of new disclosures on
International Financial Reporting Standards capital management.

(IFRS) convergence rather than adoption. "Technology makes it
Hence, Ind AS are primarily based on the IFRS possible for people to gain
control over everything,
issued by the International Accounting except over technology." -
Standards Board (IASB). However, the rules of
John Tudor
IFSR have been adapted to better suit the
Indian business environment and result in least

disruptions while allowing the Indian
companies to follow the international
standards. The adoption of Ind As has brought
the Indian Financial statements at par with the

International standards.

APPLICABILITY OF IND "Computers
have lots of
 AS TO NTPC memory but no
imagination."
The applicability of Ind AS for different entities
was based on listing status and net worth of

the Company. As NTPC is a listed entity having
a net worth of more than Rs. 500 crores, Ind AS

became mandatory for the accounting period
beginning 1st April 2016. Whenever a company

gets covered Ind AS, its holding, subsidiary
companies will also have to adopt Ind AS
(irrespective of their net worth).

Accordingly, NTPC was required to prepare its
Standalone and Consolidated Financial

Statements for the financial year 2016-17 as per
Ind AS. For this purpose, the comparative Ind
AS financial information for the period 1st April
2015 to 31st March 2016 were also required to
be prepared.

As the Financial Statements in NTPC and its
subsidiaries are drawn directly from SAP, the
implementation introduction of IndAS rules was

a challenge for the ERP Group.

IMPACT AREAS OF IND AS  There are 6.8
billion people on
The major impact areas for implementation of the planet and 4
the Ind AS were as follows: billion of them use
1. Property, Plant Equipment (PPE): The a mobile phone.
Property, Plant & equipment underwent a major Only 3.5 billion of
change.
• Accounting and Presentation of Capital them use a
Spares toothbrush.
• Capitalisation of Overhauling expenses /
Major Inspection Expenses

2. PROPOSED DIVIDEND:
• As per INDAS the dividend is to be accounted
for in the year it is paid to the shareholders.

3. DISCOUNTING OF LOANS AND ADVANCES
• The long term loans & advances are required
to be shown at the discounted value. The
discounting rate is to be determined as per the
laid down principles.

4. MEASUREMENT OF BORROWING AT
AMORTISED COST
• All the loans & borrowing issued at a discount
were needed to be shown at the amortized cost.

5. FINANCE LEASE/OPERATING LEASE The major challenge
• As per IndAS, NTPC Tanda Project – Stage I was to before the ERP team
be accounted for as Finance Lease. It involved
major changes in the presentation of not only the was that the
fixed assets but also the plant repairs and changes were to be
maintenance. impacted only with

6. CAPITAL GRANTS respect to the
• Capital grants are to be shown as Deferred accounting/
Revenue. financial statements.
There was suppose
7. INVESTMENTS to be no changes
• The Investments are to be accounted at the Fair when it came to
value reporting for CERC/
Cost Accounts /
8. REBATE TO THE CUSTOMERS Taxation purposes.
• Rebate to customers are to be accounted at for on
accrual basis on an estimated basis.

9. ACTURIAL GAIN/LOSS ON POST EMPLOYMENT " The Internet is so big,
BENEFITS so powerful and
• Actuarial gain/loss shall be recognized in the
'Other comprehensive income' pointless that for some
people it is a complete

substitute for life.
Andrew Brown

NTPC ONLINE TEST
APPLICATION:

These online tests are multiple choice

questions (MCQ) with or without negative

marking. Administrator of this system creates

various parameters like test timing, negative

marking, order of appearance of questions,

choices with correct answers. For a test, the

started test is auto submitted once the time

duration is over. Marks are calculated after

submission and it is shown to the participant.

Various MIS and analysis reports are

generated in this system. Application is used "Technology is ruled
for: by two types of

1. Online Pre-test and Post-test is used in all people: those who
the programs conducted in PMI. manage what they do
not understand, and
2. ET tests are also conducted through this
platform. those who
understand what they
3. NSB Admission test for NTPC employees.
More than 130 tests have been conducted do not manage." -
using this application till date. Mike Trout

  POWER PLANT LINKAGES TO Distance between
Generation
  COAL MINES: Companies and
Coal mines are
This application is required by Chairman, also shown.
coordinated by CMD Sectt. Sample is as
The application shows the present and shown below:-
proposed linkages between Power Generating
Companies of India and Coal Mines. The
system uses the Google Maps APIs to show
the linkages.

ONLINE TRANSIT CAMP
BOOKING APPLICATION:

A new Transit Camp Booking Application is "Technology makes it
developed to automate the booking system possible for people to
and make it more transparent. This system
is being launched with Single Sign On gain control over
through Intranet. Application is inaugurated everything, except
by Director (HR) on 16.06.17.He emphasized over technology." -
the need of uniform application across
NTPC and appreciated the new CC-IT John Tudor
developed application.

ONLINE HOSPITAL MANAGEMENT
APPLICATION:

A new web based Online Hospital Management Application
(Jeevan Rekha) has been developed by CC IT as a standardized
application, which covers the important functions of health
centers/hospitals across NTPC like Registration, OPD, Doctor,
Pharmacy, Store.

The new features which are incorporated in this application are:

1. Single and compact screen for Doctors
2. Preview/uploading feature of previous diagnosis history
3. Automatic calculation of bill amount in case of non-entitled
patients
4. Medicine stock requisition and adjustment feature for
Pharmacy.
5. Automatic stock updating in stores.
As of now, the application has been inaugurated at NTPC Dadri
Power station.