Overview
XBRL (eXtensible Business Reporting Language) is an internationally recognized digital reporting format for sharing financial and business information. It uses standardized tags to make data machine-readable, accurate and easily comparable across entities and countries.
In India, the Ministry of Corporate Affairs (MCA) mandates certain companies to file their financial statements in the XBRL format to improve transparency and accountability, ensure compliance and facilitate quick regulatory review. XBRL compliance is not just a statutory requirement—it’s a move towards modern, data-driven corporate governance.
Why
XBRL compliance is necessary for several reasons:
- Regulatory Compliance – Mandatory for companies under MCA rules.
- Data Accuracy – Tagged data minimizes manual errors.
- Transparency & Comparability – Standard format helps regulators, investors and analysts.
- Time & Cost Efficiency – Tagged data can be reused for multiple reporting purposes.
- Global Standardization – Recognized worldwide for corporate disclosures.
Applicability
As per MCA rules (updated 2025), XBRL filing is mandatory for:
- All listed companies and their Indian subsidiaries.
- Companies with paid-up capital ≥ ₹5 crore.
- Companies with turnover ≥ ₹100 crore.
- Companies required to prepare financial statements as per Indian Accounting Standards (Ind-AS).
Exemptions: NBFCs, banking companies, insurance companies, and housing finance companies (unless specifically notified).
Process of XBRL Compliance
- Check Applicability – Confirm your company meets MCA’s criteria.
- Prepare Financial Statements – As per Schedule III of the Companies Act, 2013.
- Tagging in XBRL Format – Use MCA-approved XBRL software to tag each financial element.
- Validation – Run the XBRL file through MCA’s validation tool.
- Attach Mandatory Documents – Attach signed PDF financials, Board’s Report, Auditor’s Report, linked forms, CSR data (if applicable), and photographic evidence per MCA V3 rules.
- Digital Signature – Apply DSC of the authorized director/manager ensuring that if photographs are uploaded, the signing director’s DSC is mapped to their DIN in MCA records.
- Upload to MCA Portal – File eForm AOC-4 XBRL within the due date.
- Acknowledgement – Save MCA confirmation for records.
Documents Required for XBRL Filing
- Audited Financial Statements – Balance Sheet, Profit & Loss Account, Cash Flow Statement, and Statement of Changes in Equity (if applicable).
- Notes to Accounts and significant accounting policies.
- Signed PDF Attachments (Mandatory from 14 July 2025) – Digitally signed copies of the Financial Statements, Board’s Report, and Auditor’s Report (standalone and consolidated, if applicable).
- Linked Forms & Extracts – Such as AOC-1 (statement for subsidiaries), AOC-2 (related party disclosures), CSR-2 (if applicable), and any other forms prescribed for the financial year.
- CSR Report – Structured disclosure in XBRL format, mandatory for companies covered under Section 135 of the Companies Act.
- Details of Shareholding Pattern.
- Details of Related Party Transactions.
- Previous Year’s XBRL Filings (if applicable).
- Photographs of Registered Office (Mandatory from FY 2024–25) –- Exterior view showing the building name and address.- Interior view with at least one director present.- Display board with company name, CIN, registered office address, contact number, email, and website (if any) in English and local language.
- DSC Mapping Requirement – The director appearing in the registered office photograph must digitally sign the AOC-4 XBRL using a DSC linked to their DIN in MCA records.
- Digital Signature Certificate (DSC) of the authorized signatory.
Benefits of XBRL Compliance
Standardized Reporting – Uniform financial presentation.
- Regulatory Trust – Builds credibility with MCA and investors.
- Error Reduction – Automated tagging and validation minimize mistakes.
- International Comparability – Accepted globally for business reporting.
- Faster Decision-Making – Easy access to structured financial data.
Consequences of Non-Compliance
- Late Filing Fee – ₹100 per day of delay beyond the due date.
- Additional Penalties – MCA may impose fines under the Companies Act for persistent non-compliance.
- Legal Action – In extreme cases, prosecution of officers in default.
- Loss of Credibility – May affect investor and stakeholder trust.
- Filing may be rejected if photographs, linked forms, or DSC mapping are incorrect or incomplete as per MCA V3 technical checks
Fees
Filing Fees for AOC-4 XBRL:
- Government filing fees depend on the company’s authorized share capital.
- Late fee: ₹100 per day after the due date.
- Professional/consultancy fees may apply if using a service provider.
Timeline
- File AOC-4 XBRL within 30 days from the date of AGM.
- If AGM is not held, file within 30 days from the due date of AGM.
- MGT-7/MGT-7A (Annual Return) to be filed within 60 days from AGM.
FAQs
Unlike PDFs, which are static and only human-readable, XBRL files are machine-readable and structured. This means regulators and investors can automatically extract, compare and analyse your data, reducing manual interpretation errors.
Yes. From 14 July 2025, companies must attach signed PDF copies of their financial statements, Board’s Report, and Auditor’s Report in addition to the tagged XBRL file. This ensures both machine-readable and legally signed versions are available.
Yes. Applicability is assessed on the basis of the latest audited financial statements. If your paid-up capital or turnover exceeds the threshold, you must file in XBRL for that financial year onwards.
Technically yes, but it requires MCA-approved XBRL software, knowledge of taxonomy mapping, and compliance with validation rules. Most companies prefer engaging professionals to avoid rejections or penalties.
Taxonomy refers to the dictionary of financial and business reporting elements that defines how each data point should be tagged. In India, MCA provides the Indian GAAP Taxonomy and Ind-AS Taxonomy depending on your reporting framework.
Validation ensures your XBRL instance document meets technical specifications and business rules prescribed by MCA. A failed validation means you cannot upload the file until errors are fixed.
No. Only companies covered under Section 135 of the Companies Act must disclose CSR details. However, from 14 July 2025, if CSR is applicable, structured CSR information is mandatory in AOC-4 XBRL.
From FY 2024–25, certain filings (including AOC-4 XBRL) require uploading photographs of the registered office with the company name board and a director present in the photo, in addition to the regular documents.
Partially yes. Certain static company information can be reused, but financial data, notes to accounts, and auditor’s remarks must be updated each year as they change.
Incorrect tagging can misrepresent your financial position in MCA’s data analysis and public reports. MCA may direct you to re-file, impose penalties, and in severe cases, treat it as furnishing misleading information under the Companies Act.
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