XBRL Filling

XBRL Filing

XBRL is a language for the communication of financial and business data electronically used for business reporting around the world. XBRL means eXtensible Business Reporting Language. The XBRL filing provides benefits in analysing, preparing, and communicating business information.

The Ministry of Corporate Affairs (MCA) introduced XBRL filing of financial statements with the Registrar of Companies (ROC) through the MCA portal. The Companies (Filing of documents and forms in Extensible Business Reporting Language) Rules, 2011 rendered that certain classes of companies have to mandatorily file their profit and loss accounts and balance sheets with the ROC using the XBRL taxonomy.

Subsequently, the Companies (Filing of documents and forms in Extensible Business Reporting Language) Rules, 2017 provided that certain classes of companies must mandatorily file their financial statements and other documents under Section 137 of the Companies Act, 2013 (‘Act’) with the ROC in eform AOC-4 XBRL.

Applicability of XBRL Filing for Companies

The certain classes of companies that need to file balance sheet, profit and loss accounts and eform AOC-4 XBRL using the XBRL taxonomy with the ROC are as follows:

• Every public company listed in the Indian stock exchange and their Indian subsidiaries
• Every company with a turnover of or more than Rs.100 crore
• Every company with a paid-up capital of or more than Rs.5 crore
• Every company that is required to prepare its financial statements as per the Companies (Indian Accounting Standards) Rules, 2015

Exempted Companies:

• Non-banking financial companies
• Housing finance companies
• Companies involved in the insurance business and banking sector

Once a company files in XBRL, it must continue using XBRL format even if it ceases to fall under the specified classes.

Documents Required for AOC-4 XBRL

• Profit and loss statement
• Balance sheet
• Cash flow statement
• Schedules related to P&L and balance sheet
• Statement of subsidiaries under Section 129 of Companies Act, 1956
• Boards’ report, audit report and annual report
• Consolidated financial statements
• Comments of CAG of India (if any)

XBRL Filing for Cost Compliance Report and Cost Audit

Since 2012, MCA has mandated cost auditors and companies to file cost audit and compliance reports in XBRL format based on the applicable taxonomy.

Companies covered under Cost (Accounting Records) Rules, 2011 must file compliance reports in XBRL. The cost auditor must digitally sign and file the report, ensuring accuracy in the instance document.

XBRL Taxonomy and Instance Document

An XBRL taxonomy contains properties, data definitions, and relationships of financial elements. Companies must map their reports to the prescribed taxonomy and generate valid XBRL instance documents with contextual data (period, unit, scale, etc.).

XBRL instance documents are structured digital reports linked to taxonomy, containing financial facts and values.

Benefits of XBRL Filing

• Automated data collection
• Reliable and accurate
• Time-saving process
• Better data analysis
• Improved reporting standards
• Secure and safe format
• Cost-effective
• Supports better decision making

Due Date for AOC-4 XBRL Filing (FY 2024-25)