The government said it is planning to make it mandatory for corporates to file balance sheets with it in data form, using XBRL (eXtensible business reporting language) technology, from next fiscal. Currently companies file their annual returns and balance sheets with the Ministry of Corporate Affairs (MCA) by filing up an e-form.
To start with, MCA will make companies with paid up capital of Rs 5 crore and above to file their annual returns and balance sheets using XBRL.
“We estimate 20,000 companies to be covered in the first phase. This can later be extended to other sets of companies,” MCA Joint Secretary Avinash Srivastava told reporters.
Sources said the MCA is mulling to make filing of balance sheets for companies easier as a host of them currently file statements of income rather than balance sheets to be put up in the ministry’s website as a scanned document.
Srivastava said XBRL would be made effective from June-July. Companies having March 31 as the closing day for a given fiscal normally file their balance sheets in September.
The first set of companies will be required to file their balance sheets for the financial year 2010-11 using XBRL.