XBRL Filing - Everything you need to know
Category: XBRL & Cost-XBRL, Posted on: 09/09/2021 , Posted By: Webtel
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Together is a big word. So, when many people come together, they can do wonders. XBRL was developed by a number of accountants and technologists coming together and joining hands for a common objective, i.e., is to create open, royalty-free software based on XML. As of today, XBRL International is now made up of approximately 600 members that includes global companies, accountants, technologists, and government bodies.

XBRL Filing – Everything You Need to Know

What is XBRL Filing?

As humans, we use languages to communicate to different people, where each word has been assigned a meaning. Similarly, there was a requirement of language to communicate business data in a clear and uniform manner.

So, XBRL is an XML standard for tagging business and financial reports to increase the transparency and accessibility of business information by using a uniform format. It is a language for electronic communication of business and financial data which has completely reshaped the way of business reporting.

Since it provides a common electronic format for business reporting, XBRL makes the data readable, easy to understand, and most importantly- uniform. It doesn’t matter if you are a preparer, transmitter, or user of business data, XBRL is going to benefit everyone from top to bottom.

Applicability of XBRL in India

The applicability shall be categorized as per the Indian Accounting Standards (IND AS), which are a set of accounting standards notified by the Ministry of Corporate Affairs which are converged with International Financial Reporting Standards. So, now India has two sets of accounting standards viz. existing accounting standards under Companies (Accounting Standard rules, 2006) and IFRS converged Indian Accounting Standard.

  1. Companies following IND AS:

    • Companies listed with stock exchanges in India;

    • Companies having net worth of rupees 250 crore or more;

    • Holding, subsidiary, joint venture or associate companies of above companies.

  2. Companies following Non- IND AS:

    • Companies having paid up capital of five crore rupees or above;

    • Companies having turnover of one hundred crore rupees or above.

Exempted Companies:

Following Companies shall be exempted from the applicability of Section 137 of the Company’s Act, 2013:

  1. Non-banking financial companies

  2. Housing finance companies

  3. Companies engaged in the business of Banking and Insurance

Other Clarifications:

  • Even if the company does not satisfy the criteria mentioned under section 137 of the Company Act-

    All the companies which are covered under the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011(which were required to file AOC-4 XBRL for the financial year commencing on or after 1st April 2014 using XBRL Taxonomy)


    All companies which are required to prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 are required to file financial statements and other documents as per XBRL taxonomy only, irrespective of whether it satisfies the criteria in later years.

  • What if a company voluntarily files financial statements as per XBRL for any year? Do they need to file it in the same manner in future financial years also?

    It is hereby clarified that all the companies falling under XBRL Amendment rules 2017 require to mandatorily filing statements as per XBRL. However, it is not mandatory for other companies to file statements as per XBRL format in later years.

  • What if a company fulfills the applicability criteria of filing statements as per XBRL, but due to some reasons in later years it doesn’t fall under the applicability criteria anymore? Do such companies still need to file the statement as per XBRL rules:

    Only companies falling under the applicability criteria need to file statements as per the XBRL rules.

Documents Required for XBRL Filing

There are some documents required for the successful filing of XBRL which are as under:

  • Balance Sheet with its Notes

  • Profit and Loss Statement with its Notes

  • Cash Flow Statement.

  • Statement of Change in Equity.

  • Reports from the Board of directors with annexures thereto

  • Reports from the Independent Auditor with annexures thereto

  • Corporate Social Responsibility Report, if Any

  • Statement of Subsidiaries in Form AOC-1, if Any

  • Significant Accounting Policies

  • Other Relevant Documents, if Any Required

The above documents should be thoroughly checked by the directors and staff in the company. Incomplete or false documents can lead to penalties and harsh consequences.

ROC Filing of XBRL Report

Filing of financial statements with ROC is of utmost importance. It is the basis on which the financial performance of the company is judged. It helps to know the company better and also is very important so as to protect the public interest. Hence, form AOC-4 XBRL is for filing the company’s financial statement for every financial year with the Registrar of Company.

Due Dates to File form AOC-4 XBRL for the financial year 2021-

Form AOC-4 XBRL should be filed within 30 days from the Annual General Meeting.

Filing the financial statement within the due date is very crucial. Companies that follow all the compliances within the time are not only benefited internally but are also perceived in a good way by the government and the public at large. Webtel with its professional team will assist you during the whole process. Webtel's XBRL Software Solution, Web-XBRL, has been recognized by different bodies including MCA and ICAI for XBRL filing. Web-XBRL is a complete XBRL software solution that not only generates XBRL Instance documents as per MCA Taxonomy but also fetches most of the information-related credentials automatically. The software at Webtel has error locator facility which not only results in the smooth flow of work but also ensures filing is done in a time-bound manner.

XBRL Filing Process in India

Before going through the process, it is very necessary to get familiar with few terms including:

  1. Taxonomy- This is an electronic dictionary of all cost accounting concepts that may be used by a company to prepare and present its Cost Audit and Compliance Report to MCA in XBRL.

  2. Mapping- It is a process of comparing the concepts in the financial statements to the elements in the published taxonomy.

Following steps need to be followed for successful XBRL filing:

  • Step 1: Begin with the company’s financial statements.

  • Step 2: Map Company’s every financial Element to a corresponding element in published taxonomy.

  • Step 3: Create the instance document- It involves tagging the XBRL taxonomy elements with various accounting heads in the books of accounts of the company

  • Step 4: Review and Verify the instance document- Once the document is prepared it has to be verified that all the information has been correctly captured and is a valid instance document.

  • Step 5: Download XBRL validation tool from MCA Portal

  • Step 6: Use the tool to validate the instance document- The validation shall be done as per the latest and correct version of taxonomy prescribed by MCA

  • Step 7: Perform Pre- Scrutiny of the validated instance document through the tool- A working internet connection is mandatory to perform this step.

  • Step 8: Attach the instance document to Form AOC-04 XBRL - Separate instance documents need to be attached with respect to Standalone Financial statements and consolidated financial statements

  • Step 9: Uploading Form AOC-04 XBRL on the MCA Portal.

Understanding these technical words and a long process can be sometimes tough. So, to solve this, Webtel provides software with a user-friendly interface that is easy to use and understand. Web-XBRL facilitates easy mapping and tagging utility to financial and non-financial data. It also has an inbuilt facility that helps its users to import and export all the required information from or to MS- Excel files/ Word files/ XML Files. Web-XBRL automates most of the functions which save a whole lot of time and effort. The more complex the process is easier and more convenient at Webtel.

Additional fee of late Filing XBRL Report

In case of Delay in filing the annual returns/balance sheet/financial statement beyond the period provided under Section 137(1) of the Act – Due dates to file AOC-4 XBRL (within thirty days of the date of the annual general meeting) Rupees 100/- per day would be the late fees.

Penalty for not filing the Form AOC-4 XBRL at all

  • If a company does not file AOC-4 XBRL along with a copy of the financial statements before the due date, the company will be punishable with a fine of one thousand rupees for every day during which the failure continues up to a maximum amount of Rs.10 lakhs.

  • Further, the Managing Director, Directors and the Chief Financial Officer of the company, could be punished with imprisonment for a term which may extend to six months or with fine which will not be less than Rs.1 and up to Rs.5 lakhs.

To avoid such heavy penalties and consequences, Webtel's Web-XBRL Solution can be used for XBRL filing. Webtel with its advanced features and automated processes leads to timely reporting and savings in the compliance cost. Sometimes even if the filing is done in proper time but any error found at the later stages could lead to further cost, hence to avoid such costs and charges all the process is done at Webtel, right from the scratch till complete filing is error-free and is checked multiple times and most importantly everything is as per the MCA guidelines.

Webtel also provides end-to-end assistance for preparing XBRL reports; hence there is no worry of any misunderstanding or lack of knowledge. You can even schedule a demo on Webtel for further insights.

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