Overview of XBRL Filing

XBRL (eXtensible Business Reporting Language) is a standardized language used for the electronic communication of financial data. In India, it is mandated by the Ministry of Corporate Affairs (MCA) for specific classes of companies to file their financial statements in a structured and machine-readable format.

The purpose of XBRL is to improve transparency, comparability, and efficiency in financial reporting. It eliminates manual data entry and simplifies the analysis and verification process for regulators, auditors, and stakeholders.

 Key Features:

• Enables automated processing of financial data

• Reduces errors and inconsistencies

• Enhances data comparability across companies

• Required for filing Balance Sheet, Profit & Loss, and other financial documents

Applicability:

XBRL filing is mandatory for:

• Listed companies

• Companies with paid-up capital ≥ ₹5 Cr

• Companies with turnover ≥ ₹100 Cr

• Companies governed under the XBRL Rules issued by MCA

Registration Process for XBRL Filing

To file financial statements in XBRL format with the Ministry of Corporate Affairs (MCA), companies must follow this step-by-step process:

 Step 1: Identify Applicability

Check if your company falls under XBRL filing requirements:

• Listed companies

• Unlisted public companies with

  • Paid-up capital ≥ ₹5 Cr OR

  • Turnover ≥ ₹100 Cr

 Step 2: Create/Update MCA Login

Ensure your company has an active account on the MCA portal, and the Director(s) have valid DSCs (Digital Signature Certificates).

 Step 3: Prepare Financials in XBRL Format

Use XBRL software tools to convert financial statements (like Balance Sheet, P&L, Cash Flow, Notes) into XBRL format using proper MCA taxonomy.

Step 4: Validate & Pre-scrutiny

Use the MCA XBRL validation tool to check and validate the XML file. Fix any tagging or data errors.

Benefits of XBRL Filing

 Standardization & Accuracy

XBRL ensures uniform presentation of financial data, reducing errors and enabling accurate regulatory reporting.

 Improved Transparency

It allows regulators, investors, and stakeholders to easily understand and compare financial information across companies.

 Time & Cost Efficiency

Once set up, XBRL automates much of the financial reporting process — saving time and reducing manual effort.

Faster Data Analysis

Data in XBRL format is machine-readable, making it easier for MCA and other regulators to process and analyze information quickly.

Eligibility for XBRL Filing (As per MCA Rules)

The following companies are mandatorily required to file their financial statements in XBRL format with the Ministry of Corporate Affairs (MCA):

 All Listed Companies

Companies listed on any stock exchange in India (or their Indian subsidiaries).

Public Companies with:

• Paid-up capital ≥ ₹5 Crores, OR

• Turnover ≥ ₹100 Crores
  (based on the latest audited financial statements)

 Companies Required Under MCA Notification

Any other company as specifically notified by the MCA from time to time under Companies (Filing of Documents and Forms in XBRL) Rules.