XBRL (eXtensible Business Reporting Language) is a language for the electronic communication of business and financial data that has revolutionized business reporting around the world. Its major benefits include ease in preparation, analysis and communication of business information by the corporates. It offers cost savings, greater efficiency, improved accuracy as well as reliability to all those involved in supplying or using financial data. With increased coverage, it is hoped that the XBRL data thus collected would significantly enhance the Ministry’s capabilities in policy formulation and regulatory functions for advantage of corporates as well as public and investors at large.
FILING OF BALANCE SHEET AND PROFIT AND LOSS ACCOUNT IN EXTENSIBLE BUSINESS REPORTING LANGUAGE (XBRL) MODE FOR FINANCIAL YEAR COMMENCING ON OR AFTER 1-4-2011
1. Vide Companies (Filing of documents and forms in Extensible Business Reporting Language) Rules, 2011 notified vide GSR No. 748E, dated 5-10-2011, select class of companies are required to file their Balance Sheet and Profit & Loss Account and other documents as required under section 220 of Companies Act, 1956 with the Registrar of Companies for the financial year ending on or after 31st March, 2011.
2. It has now been decided by the Ministry to mandate the following select class of companies to file their Balance Sheet and Profit & Loss Account in XBRL mode for the financial year commencing on or after 1-4-2011:
(i) all companies listed with any Stock Exchange(s) in India and their Indian subsidiaries; or
(ii) all companies having paid up capital of Rupees five crore and above; or
(iii) all companies having turnover of Rupees one hundred crore and above; or
(iv) all companies who were required to file their financial statements for FY 2010-11, using XBRL mode.
However, banking companies, insurance companies, power companies and Non-Banking Financial Companies (NBFCs) are exempted from XBRL filing till further orders.
3. The applicable taxonomy as per Schedule VI of the Companies Act, 1956 has already been placed on the Ministry’s website www.mca.gov.in. The Business Rules, validation tools, etc. required for preparing the financial statements in XBRL format, as per the revised Schedule-VI and Accounting Standards, are under preparation and would soon be made available by the Ministry. The actual date for enabling XBRL filing will be intimated separately.
Additional Fee Exemption:
4. All companies referred to in Para-2 above, will be allowed to file their financial statements in XBRL mode without any additional fee/penalty upto 15h November, 2012 or within 30 days from the date of their AGM, whichever is later.
WHAT NEED TO BE FILED IN XBRL MODE?
Circular 37/2011, Dated 07.06.2011, mandated that certain class of companies have to filed their Balance Sheets, Profit and Loss account alongwith Director’s and Auditor’s Report for the year 2010-2011 onwards by using XBRL Taxonomy. Thus, the following need to be filed in XBRL mode:
1. Stand alone Balance Sheet;
2. Stand alone Profit & Loss Account;
3. Consolidated Balance Sheet;
4. Consolidated Profit & Loss Account;
5. Director’s Report;
6. Auditor’s Report
Notes to accounts and Schedules to Financial Statements: Notes to accounts and Schedules are very much the integral part of balance sheet and profit and loss account and thus these also need to be filed in XBRL mode.
Cash flow statement: Cash flow statement need not be filed in XBRL mode as the necessary information would be tagged through the taxonomy of balance sheet and profit and loss account.
Annual Return and Compliance Certificate: These need not be filed in XBRL mode and the extant procedure of filing eForm 20B and eForm 66 would be followed.
Notice of General Meeting: This also need not be filed with ROC considering the requirements of documents need to be filed with ROC u/s 220 of the Companies Act, 1956.
CERTIFICATION OF E-FORMS UNDER THE COMPANIES ACT, 1956 BY THE PRACTICING PROFESSIONALS:
MCA through its Circular 14/2011, Dated 08.04.2011, stated that Ministry of Corporate Affairs has been steadily progressing towards total electronic filing and approval regime. Objective is to do away with human intervention in MCA approvals to the maximum extent possible.
For this purpose, Ministry of Corporate Affairs has entrusted practicing professionals registered as Members of the professional bodies namely, ICAI, ICSI & ICWAI with the responsibility of ensuring integrity of documents filed by them with MCA in electronic mode. Professionals are now to be responsible for submitting /certifying documents (to be signed digitally by them) and system would accept most of these documents online without approval by Registrar of Companies or other officers of the Ministry.
However, to ensure that the data integrity is maintained at all times, there will be checking of such submissions to guard against fraudulent filing. In addition to the penal actions against the companies and their officers in default for furnishing incorrect or false information in the documents as provided under the Companies Act, 1956, action would also be taken on receipt of any complaint, anonymous or otherwise, against such professionals in the following manner:-
a) Alleged wrong submissions: In such cases, quick enquiry will be conducted by the concerned RD who will be assessing prima facie, cases of wrong doing by the professionals. Concerned professionals will be given time for furnishing explanation before conveying to a cancellation.
b) This report will be submitted to e-Governance Cell of MCA. The Cell will inform in the concerned Professional Institute to initiate an enquiry and complete the same within a month’s time.
c) Simultaneously, the concerned professional shall be debarred and shall not be allowed to enter to submit any document on MCA Portal. This debarment will be for a period of 30 days or till the final enquiry report is received from the respective Professional Institute.
d) MCA will take a final decision after considering the report so received.
For XBRL Conversion Outsourcing Services by KGMA visit at www.kgma.in or contact at 9953590104, 9899954015