XBRL (eXtensible Business Reporting Language) is a digital format for financial reporting. The MCA mandates XBRL filing for certain classes of companies, and the filing is made in addition to the regular AOC-4 and MGT-7 filings.
The Applicability
The XBRL filing is mandatory for all listed companies, all companies with a paid-up share capital of ₹5 crore or more, and all companies with a turnover of ₹100 crore or more. The filing is also mandatory for companies that are required to file the consolidated financial statements in XBRL format. Small companies, OPCs, and dormant companies are exempt.
The Process
The company must prepare the financial statements in the XBRL taxonomy prescribed by the MCA. The taxonomy defines the tags for the balance sheet, the profit and loss account, the cash flow statement, and the notes. The company must map its financial data to the tags, validate the instance document, and file it with the ROC.
The XBRL filing requires the use of XBRL software, and the company must ensure that the instance document is valid and that the data is consistent with the audited financial statements. The filing is subject to the same deadline as the AOC-4 filing.
The Penalty
The failure to file the XBRL document attracts the same penalty as the failure to file the AOC-4. The company and its officers are liable to additional fee and penalty, and the ROC may adjudicate the offence.
Call to Action
Anuj Desai & Associates advises companies on XBRL filing—from the applicability analysis and the taxonomy mapping to the validation and filing. If your company is required to file in XBRL, we can help you complete the process accurately.
📧 office@anujdesaiassociates.com
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