For the first time, the various environmental sustainability steps undertaken by Indian Railways have been reflected in the transporter’s accrual based financial statements for 2022-23. This has been made possible by the CA Institute’s Accounting Research Foundation (ICAI ARF), which on Friday submitted Accrual Based Financial Statements of Indian Railways for the financial year 2022-23 to the officials of Indian Railways.
Accrual-based financial statements have been prepared for the first time on the line of integrated reporting and all the initiatives undertaken by Indian Railways towards environment sustainability have been reflected, sources said. The Indian Railways in collaboration with the ICAI ARF has initiated measures to develop Transaction Based Accrual Accounting System for the financial year 2023-24 including the steps being undertaken by Indian Railways towards Environmental, Social, and Governance (ESG) goals, they added.
Nirupma Kumar, Chief Administrative Officer ,Accounting Reform (CAO/AR), Indian Railways said, “It will be a milestone in the history of Government of India that accrual based financial statements has been prepared for a ministry. Indian Railways is the first Ministry to take this initiative at entire ministry level and has undertaken various step towards environmental Sustainability, the same has been reflected for the first time in the accrual based financial statements for Financial Year 2022-23”
Ranjeet Kumar Agarwal, President, ICAI, said, “Indian Railways partnership with ICAI ARF since 2014 has been a cornerstone in its journey towards accrual accounting, starting with successful pilot studies and evolving into a system-wide transformation. It is a matter of pride for the ICAI and ICAI ARF to submit the Accrual Based Financial Statements of Indian Railways for the financial year 2022-23. I appreciate Indian Railways for raising the bar of financial statements and incorporating sustainability reporting in the financial statement. This initiative of Indian Railways would encourage other Government organisations/entities to adopt accrual accounting by recognising the benefits of such accounting”.
ICAI President suggested Indian Railways should also consider the physical verification of their assets.
ICAI ARF has already successfully prepared the Accrual Based Financial Statements for all Zonal Railways and Production Units from the financial year 2015-16 to 2022-23.