XBRL(Extensible Business Reporting Language) is the language for the electronic communication of business for reporting Financial Statements that are necessary to be filed with the Registrar of Companies. XBRL assists in giving reliable and accurate data regarding financial and business data that are requisite by various government and other regulatory bodies. XBRL Filing is mandatory for running the business.
Ministry of Corporate Affairs issued a Notification on 06th November 2017 in respect of explanation on obligatory applicability of XBRL Filing on particular Companies. These rules are called the Companies (Filing of Documents and Forms in Extensible Business Reporting Language), Amendment, Rules, 2017.
The Class of Companies that are required to File Financial Statements in XBRL FILING Mode:
All corporations are listed with Stock Exchanges in India and their Indian Subsidiaries regardless of their capital or turnover.
All corporations have paid-up share capital of Rs. 5cr and above.
All corporations have a turnover of Rs. 100cr and above.
All companies need to prepare their financial statements in accordance with the Companies (Indian Accounting Standards) Rules, 2015.
Benefits of XBRL FILING
XBRL Filing provides benefits in the preparation, analysis, and communication of business information. It offers cost savings, greater efficiency as well as improved accuracy and reliability to all those involved in supplying or using financial data. XBRL stands for eXtensible Business Reporting Language. It is already being put to practical use in a number of nations and implementations of XBRL Filing are rising rapidly worldwide.
Related section with the latest amendment on XBRL Filing
The definition of XBRL is provided in Rule 2 of the corporation’s (Filing of Documents and Forms in XBRL Filing) Rules 2015.
In XBRL Rules 2015 first 3 categories of applicability of XBRL Filing were the same. However, there was one more category i.e. “all corporations which were up till now covered under the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011”.
Therefore, a corporation that was required towards filing a financial statement in XBRL under previous rules but not falling under the applicability limit as of now. Such corporations are exempted from filing financial statements in XBRL Filing under Amendment Rules, 2017.
Legal remedies
In case of failing to file the copy of the Financial Statements towards ROC within the prescribed time limit, the penalty provisions are:
Company: Fine Rs.1, 000.00 for everyday till default continue but maximum Rs. 10, 00,000.00.
Directors: Fine Minimum Rs. 1 Lakhs to Maximum Rs. 5 Lakhs or Imprisonment up to 6 months.
CFO: Same as in the case of Directors.
Authorized Director: Same as in the case of Directors.
Document Required for Registration of XBRL FILING
XBRL filing is done through computer software designed and created for filing in XBRL mode. Every one of the Information like Financial Statements (Balance Sheet, Statement of profit and loss, Cash Flow Statement, Notes to Financial Statements), Directors Report, Notice of AGM, List of Top Shareholders, List of Related Parties including their PAN No is required in soft copy ( word, excel, PDF) as information contained in these documents are included in the software.
