The topic we are going to discuss today seems simple but gets complicated when we do not have proper knowledge or guidance to do it. Being a mandatory filing for the companies we do not have option to skip, even if we do not like it.
Let’s do the simple one and will get the difficult one done afterwards. This is actually the average tendency of the human being. You must think why we are discussing this thing. Let’s come to the point. This happens in the case of Annual Filing too. Annual filing can be Normal as well as XBRL. Whenever we hear the term XBRL we start panicking and start avoiding it. So, to avoid this mentality and to make it simple and easier let’s go through some points.
Let’s discuss some basic points related with the XBRL Annual Filing:-
Meaning of Annual Filing:-
Every company registered under the Companies Act, 2013 or under Companies Act, 1956 are required to file certain prescribed e-forms with the Registrar of Companies (ROC) annually. This is a mandatory requirement for the companies to file e-forms timely without attracting any additional fees.
Annual filing can be Normal as well as XBRL. If you ask what’s Normal filing we can say the filing which is not XBRL can be termed as Normal Filing. This is just to make you understand else there is no specific concept of Normal filing under Companies Act, 2013. So do not get me wrong.
Applicability of XBRL Filing:-
1. Every Listed Company
2. Every Company with a Paid-up Capital of Rs. 5 Crores or more
3. Every Company with a Turnover of Rs. 100 Crores or more
4. Every company which are required to prepare their financial statements in accordance with the companies (Indian Accounting Standards) Rules, 2015
E-forms under Annual Filing:-
1. Form AOC-4 b. Form MGT-7
1. Form AOC-4 XBRL b. Form MGT-7
Mandatory XBRL Software:-
Every eligible company as specified above for XBRL filing must have a particular XBRL Software installed in their system before getting started. The software must be renewed every year before proceeding for filing for any particular Financial Year.
Once the software is installed in your system you must have a Login details to get it started. This can easily be setup by the help desk person for which ever software you are using. There are various software’s available in the Market. You can choose on your own whichever is feasible for you and your Company.
A single software can have various details of the Companies required to file XBRL. You can add or create the Companies as per your requirement. Lets make it simple. A dialogue box will appear after clicking on the software which will ask the following details:-
1. Login Id and Password
2. Company Name (A drop down list will appear if you have already created various companies and select for which you want to start working.)
3. Choose the Financial Year form the drop down list.
4. Enter Login the company will automatically appear on the software screen and start working.
Example of Software:-
Web-e-XBRL (This is the software we are using currently but you can have different software as per your choice. This is just for reference nothing specific.)
Details of the Company Master data:-
Once the Login is successful. The first think we need to do is to find an option “MASTERS” on the top of the software which will have sub-category like Company Master, Director’s Master and Auditors Master. Every category will ask certain details for the company. Enter the details as required and get it started. This is the first and foremost step in starting XBRL filing.
The second and the most important step in the XBRL Filing is “Document Master”. As the name suggests we need to add or upload documents required for XBRL filing. The list of documents required for uploading are given below:-
Balance Sheet b. Profit & Loss Statement c. Cash Flow Statement (As per the applicability) d. Notes to Accounts e. Schedules related to Balance Sheet and Profit & Loss Statement f. Statement relating to Subsidiaries g. Auditors Report h. Directors Report (Along with all Annexure) etc.
The documents can be uploaded on one by one basis.
Tagging of Documents:-
The most important tool in XBRL is Tagging. Every documents uploaded need to be tagged in a particular heads. A single item of the Balance Sheet has various effects. So, we must make sure the data are tagged properly and wherever required.
When we are doing it for the first time we do not know if we have tagged the particular data every where required or not. For this and to avoid any confusion we always need to keep in mind that first go to the particular head or item needed to be tagged and right click on such particular head you will see “Go to Note” option and click on that option and you will be directed where you need to enter data. You can directly enter F7 on particular head to go to Note for such particular Item.
The tagging of particular item can only be considered successful if it shows “Green” in colour on the right hand side (i.e. Heads of the Balance Sheet).
Types of Tagging:-
Tagging can be broadly categorized in two types. One is “Financial Tagging” and other is “Notes Tagging”.
Financial Tagging:-The documents containing financial figures/amounts will be tagged under Financial Tagging.
For Example:- Balance Sheet, Profit & Loss Statement and cash Flow Statement etc.
Notes Tagging:-The documents containing details of the company in a notes form without any financial figures will be tagged under Notes tagging.
For Example:- Auditors Report, Director’s Report, Notes to Accounts etc.
Explanation of Financial Tagging:-
Once the uploading of documents are successful. We need to start Tagging the documents uploaded. For this, the Software comes with an option “FINANCIAL TAGGING” . Click on the option and you will see a New Screen will open. The screen will have Balance Sheet displayed on the left and the Main Heads of the Balance Sheet displayed on the right. Open the heads of the Balance Sheet and enter the applicable figures from the Balance Sheet.
In a similar way rest other documents listed above can be tagged accordingly. On the bottom of the left hand side where Balance Sheet is displayed you will find a drop down arrow. From where you can choose the particular document needed for tagging.
You can also enter the figures manually by clicking on the particular row by entering F2. Once you enter F2 the courser will start blinking and you are ready to enter figures. And in case if you do not want to enter figures manually and want to save time than you can opt an option of Tagging the figures on the particular row. This can be done by double clicking on the particular row for a particular head.
Let’s say we need to Tag Share Capital of Rs. 5,00,000 for the FY 2019-20 & 2018-19. Take the courser on the Balance Sheet where Share Capital amount is displayed and press single click on the amount. And then take the courser on the right side where Share capital Head is displayed and press double click in such particular row where you need to tag the amount.
Once the tagging is successful you will see the Share Capital amount displayed on the left hand side (i.e. Balance Sheet) will appear “GREEN” and in right hand side (i.e. Heads of the Balance Sheet) the amount will automatically fetch for both the FY.
Details of Fixed Assets:-
The Fixed Assets head is divided into two types. One is “Tangible Assets” and other is “Intangible Assets”.
Once you click on the Tangible Assets the table will appear on the screen. There is a list of Taxonomy (i.e. List of Assets) choose the assets appearing in your Balance Sheet and enter the details for such particular assets and save the data. Enter the data very carefully so that there is no chance of any mistake and the Fixed Asset table matches with the amount specified in the Balance Sheet.
In the same way we will enter Intangible Assets details if present in the Balance Sheet and save the data accordingly.
If it shows Green in colour in the Balance Sheet Head column it means the data tagged are accurate and correct.
Tables for particular Item:-
After completion of Financial Tagging we can now come to point “TABLES”. The head Tables has various Notes listed under it. We need to check the Notes applicable to the Company and click on such particular Notes if applicable and enter the required details for such particular Notes.
Once you enter the details for such particular Notes under Table do not forget to save the details. There will be a “Save Data” option on the bottom. Click on that and save the data.
Table has various Notes & Disclosure Options. Some of them are given below:-
1. Notes – Borrowings b. Notes – Non-current Investments c. Notes- Related Party
2. Notes- Subsidiary Information e. Notes- Amalgamation f. Disclosure- Auditors Report
3. Disclosure – Director’s Report etc.
Let’s Say if we click on the “Notes- Related party”. The table containing details related with the Related party will appear and if it’s applicable to your company then enter the details and save the data. And can be done for the rest Notes and Disclosures too.
Do not enter any data if some Notes are not applicable to your Company.
How to Add Footnote:-
Footnote basically are the elaborated details of the particular item appearing in the Balance Sheet. Sometimes you will notice there is no particular item name required to be tagged. So what we do is we enter the cumulative amount on the particular row for such particular head or item and the elaboration will be under Footnote option.
To enable Footnote option right click on the particular item and you will find Footnote Option. It will have option Current Year and as well as Previous Year. If we need it for both the year enter one by one.
Once you select Current year One New Word page will open. And type the details for such particular item or head and save the data. Once you save the data you will find the item for which you used footnote option has been underlined in blue color and if you place courser on such item it will show footnote details. Similarly can be for Previous Year too.
Other Expenses – Rs. 50,000 (includes Rent Rs. 5,000, Commission -Rs. 10,000, Filing Fees-Rs, 10,000, Security Transaction tax- Rs. 5,000 and GST Paid – Rs. 20,000)
While tagging Other Expenses you will not be able to find out each and every item listed above. We can say there will be no separate option for GST or say Security Transaction tax etc. So what we do is enter the items which are listed on the Software and rest items will be accumulated in the Others option.
And then we will opt for Footnote option and will enter every items listed above on the Others Expense with the amount and will save the data. Doing this will be a full fledged details of the Other Expense Head.
Generation of XML File:-
This option will help you creating the data entered for such particular company in XML file. Click on that option and Generate XML file and save it in your System for further proceedings.
The Form AOC_4 XBRL requires attachment in XML file only. So it’s very important to create a XML File.
Validation of Data (MCA Validation Tool):-
After completion of all the tagging and data entered we need to Validate Data. The option for “Validation Tool” is available on the Software. Click on the option and MCA Validation Tool will automatically open in your system. Once the MCA Tool is open it will ask for Select Taxonomy for which C&I you need to validate. Select the C&I applicable and it will start processing.
Once the processing is complete you will find “File” option on the top in the MCA Validation Tool. Click on file and then open and select the XML file wherever saved for validating it. After selection of the XML file of such particular company the instance documents will load. And when the document is 100% loaded than only you can proceed further. And for this you need to be patient because it will take few minutes to get it 100% loaded.
After this you can go to “File” option and select “Validate”. Once you select the Validate option an Error Report will open and that will have “List of Errors” which need to be rectified or tagged properly to get it resolved.
Sometimes there are some error which creates problem in rectifying. And If you face any kind of it you can directly contact the Software help desk representative they will connect your system through Any Desk or Team Viewer and will guide you in resolving the issue.
Get all the errors resolved to proceed further. Once you validate all the errors then again select the “Validate” option until you get “The Financial Statement document of XYZ Co. has been successfully validated” displayed on the MCA Validation Tool.
Prescrutiny of XML File:-
This is the last step in finalizing the XBRL for such particular company. After validating the XML File you need to select “Prescrutiny” under File Option. Select Prescrutiny and you will get “No Prescrutiny Errors Occured” displayed on the MCA Validation Tool. And now you are ready to go.
And if you need PDF file for the same XML file generated. This can also be done by selecting “Export to PDF” option. Choose the XML file wherever saved and it will create PDF for the same and save it in your system for future reference.
Uploading of Form AOC-4 XBRL:-
Once everything is complete and the XML file has shown “No Errors”. The next step is to prepare the Form AOC-4 XBRL and attach the XML file of such particular companyto the e-form. And get the e-form prescrutinized and upload it on the MCA.
Author has tried her level best to cover the possible relevant aspect related to the XBRL Filing. The minute details has also been discussed for better understanding of this topic. This article has been drafted keeping in mind every possible professionals (New or Fresher or Experienced etc.) or Trainee or Intern etc. whosoever required clarity on this topic.
Hope you find this article helpful & related and now we can guess you will Not say NO to XBRL filing anymore.
In case of any suggestion or improvement please feel free to contact. This will boost our Morale and will help in sharing our knowledge. The author can be reached through Email which is available on the cover page.
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This article is based on the best of my knowledge and moreover in no event author shall be liable for any direct or indirect result from this article. This will only be treated as a knowledge sharing initiative provided solely for information. This article does not guarantee a professional advice or recommendation.