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2022

Applicability of XBRL Reporting for Companies in India

 XBRL Reporting

XBRL (eXtensible Business Reporting Language) is a freely available and global framework for exchanging business information. XBRL allows the expression of semantic meaning commonly required in business reporting. The language is XML-based and uses the XML syntax and related XML technologies such as XML Schema, XLink, XPath, and Namespaces. One use of XBRL is to define and exchange financial information, such as a financial statement. The XBRL Specification is developed and published by XBRL International, Inc. (XII).

XBRL is a language for e-communication of financial and business data for business reporting. It is a standardized communication language in electronic form to express, report or file a financial statements by a Companies. However, XBRL is only a method of presentation or reporting. It does not attempt to make any changes in the content to be reported.

How XBRL System Works?

XBRL makes the data readable, with the help of two documents:

1. Taxonomy:

  • Taxonomy defines the elements and their relationships based on the regulatory requirements.
  • Using the taxonomy prescribed by the regulators, companies need to map their reports, and generate a valid XBRL instance document.
  • The process of mapping means matching the concepts as reported by the company to the corresponding element in the taxonomy.

2. Instance Document:

  • In addition to assigning XBRL tag from taxonomy, information like unit of measurement, period of data, scale of reporting etc. needs to be included in the instance document.

Applicability of XBRL Reporting for Companies in India:

  • All the Companies registered with MCA are required to file the financial statements with MCA.
  • From 2010-11, MCA implemented filing requirements for various classes of companies to file their financial statements in XBRL format, to improve the quality of statements, enable greater transparency and comparability of data.

XBRL Reporting requirements apply to following Companies in India:

  • A company listed on any stock exchange in India and its Indian subsidiaries; or
  • A companyhaving a capital of 5 crores or more; or
  • A companyhaving a turnover of 100 crores or more; or
  • All companies which are required to prepare their financial statements in accordance with the Companies (Indian Accounting Standards) Rules, 2015.

Note:

  • Once a companyis required to fileits financial statements in XBRL under section 137, such company shall continue to file its financial statements and other documents in XBRL only, even though it may cease to fall under the class of companies specified above.

Exemptions from XBRL Reporting:

Following companies are exempted from fling financial statements under XBRL rules:

  • Non-banking financial companies;
  • Housing finance companies;
  • Companies engaged in the business of Banking and Insurance sector.

Documents to be filed in XBRL by eligible companies:

The following Documents need to be filed in XBRL Format:

  • Balance Sheet;
  • Profit and Loss Statement;
  • Cash Flow Statement;
  • Schedules related to Balance Sheet and Profit and Loss Statement;
  • Notes to Accounts;
  • Statement pursuant to Section 212 of the Companies Act, 1956 relating to subsidiaries;
  • Audit and Annual Report.

E-Form AOC-4 (XBRL):

Form AOC 4 is used to file the financial statements for each financial year with the Registrar of Companies (ROC).
The company is responsible for duly furnishing the form within 30 days of its Annual General Meeting.
In the case of consolidated financial statements, the company shall file the AOC 4 CFS.

Type of AOC Forms:

Following type of AOC forms are available for different type of companies:

Form

Nature of Form

Form AOC-4

Form for filing financial statement and other documents with the Registrar

Form AOC-4 XBRL

Form for filing XBRL document in respect of financial statement and other documents with the Registrar

Form AOC-4 CFS

Form for filing consolidated financial statements and other documents with the Registrar

Form AOC-4 NBFC (IND-AS)

Form for filing financial statement and other documents with the Registrar for NBFCs

Form AOC-4 CFS NBFC

Form for filing consolidated financial statements and other documents with the Registrar for NBFCs

Form AOC-5

Notice of address at which books of account are maintained

 

Time Limit for Filing E-Form AOC-4 (XBRL):

  • Under normal circumstances, AOC-4 must be filed with ROC within 30 days of the conclusion of AGM. However, following scenarios must be considered to determine due date of filing of AOC-4.

Scenario

Deadline for Filing with RoC

Financial Statement, Consolidated Financial Statements and Documents attached to the Financial Statements are  adopted at the AGM.

  • Within 30 days of the Annual General Meeting along with fees/additional fees as given under section 403.

  • Note: In case of OPC the time period shall be taken as 180 days from the closure of the financial year.

If financial statements are un-adopted in AGM.

  • Within 30 days of the Annual General Meeting.

  • Note: The financial statements along with the documents will be considered provisional till the time the adopted financial statements are filed.

Where AGM is Adjourned.

  • Within 30 days of the adjourned Annual General Meeting along with fees/additional fees as prescribed.

If AGM is not held.

  • Within 30 days from the date when the AGM should have been held along with fees/additional fees as prescribed.

  • Note: The financial statements along with the documents and the reasons for not holding the AGM have to be filed.

Certifying Form AOC 4 (XBRL):

  • A declaration has to be given by the Director/Manager/Secretary/CEO/CFO certifying that all information provided in the form is true and correct and is in compliance with the law.
  • The form has to be digitally signed along with the DIN of the director or PAN of the Manager/CEO/CFO.
  • A full time practicing Chartered Accountant/Cost Accountant/ Company Secretary has to provide a declaration stating he/she has verified all the documents attached and he/she certifies all the information to be true, correct and complete.
  • The practicing professional has to also state the membership number and the status i.e. fellow or associate.

Fees for Filing Form AOC-4 (XBRL):

Share Capital

Fees per Document

Less than 1,00,000

Rs 200 per document

1,00,000 to 4,99,999

Rs 300 per document

5,00,000 to 24,99,999

Rs 400 per document

25,00,000 to 99,99,999

Rs 500 per document

1,00,00,000 or more

Rs 600 per document

Note: Filing Fees shall be Rs. 200 per document for Company not having share capital.

Late Fees:

  • In case of delay in filing the annual returns/balance sheet/financial statement the following fees is applicable:
  • In case of delay beyond the period provided under Section 137(1) of the Act – Due dates to file AOC-4 (within thirty days of the date of Annual General Meeting) additional fees payable shall be Rs. 100 per day.
  • In case of delay in filing the belated annual returns/balance sheet/financial statement the following fees is applicable:

Period of Delay

Additional fee payable

Up to 30 days

2 times of normal filing fees

More than 30 days and up to 60 days

4 times of normal filing fees

More than 60 days and up to 90 days

6 times of normal filing fees

More than 90 days and up to 180 days

10 times of normal filing fees

Beyond 180 days

12 times of normal filing fees

Penalty for non-filing AOC-4 (XBRL):

Default committed by

Penalty

Company

INR 1000 for every day of default subject to Max of Rs. 10 Lakhs.

  1. Managing Director/Chief Financial Officer

  2. In case of the absence of the Managing Director/Chief Financial Officer-Any other Director who the Board assigns the responsibility.

  3. In case of the absence of any such Director-All directors of the company.

INR 1 Lakh + INR 100 for each day of default subject to Max of INR 5 Lakhs.

XBRL and Cost Audit Report:

A company required to furnish cost audit report and other documents to the Central Government under sub-section (6) of section 148 of the Act and rules made thereunder, shall file such report and other documents using the XBRL taxonomy given in Annexure-III for the financial years commencing on or after 1st April, 2014 in e-Form CRA-4 specified under the Companies (Cost Records and Audit) Rules, 2014.

 

 

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Financial Management