Many researches have been conducted on the effect of adoption of IFRS on value relevance of firms e.g. Mohd Halim and Zulkifli [2008], Ahmed and Goodwin [2006], Harris and Muller [1999], Bartov et al. [2005], Lin and Chen [2005], Horton and Serafeim [2006], Schiebel [2006], Niskanen et al. [2000] and Mohd Kadri et al. [2008]. Even though they have employed similar model [Ohlson, 1995], their results were not conclusive. In India, the effect of adoption of IFRS on value relevance of accounting numbers is still not known yet as the IFRS is not fully applicable.