Consequences for Non-Filing Balance Sheet in XBRL Mode to ROC.

XBRL- eXtensible Business Reporting Language as the title explain XBRL mode is a unique language to describe financial statements of financially big companies and companies listed on the stock exchange.

As we all are aware that tabular data looks good in an excel spreadsheet and the detailed written content fits better in MS-word similarly balance sheet and audit reports –Present better in XBRL mode, where they can be studied in a better way of presentation.

XBRL is a universally accepted phenomenon to file financial data of a company in consonance of the accounting policies and procedure, the universally accepted language over the internet for transmission of financial information.

Which Companies are Required To Do XBRL Filing of Balance Sheet?

Below mentioned class of companies is required to file their financial statements and other documents under section 137 of the Companies Act, 2013 with the Registrar in e-form AOC-4 XBRL:

– All companies listed in the stock exchange in India and their Indian subsidiaries.

– All companies with a turnover of Rs. 100 crores or more

– All companies with a paid up capital of Rs. 5 crores or more

– All the companies which are required to prepare their financial statements in accordance with the Companies (Indian Accounting Standards) rules, 2015.

But Following the Class of companies is out of the purview of filing financial statements and Annual reports in XBRL.

  • Non-banking financial companies,
  • Housing finance companies and
  • Companies engaged in the business of Banking and Insurance sector

are exempted from filing of financial statements under these rules.

Note: If XBRL filing applies to a company in any current financial year, then it will apply to a company for succeeding financial years as well. Once applicable always applicable.

What are The Consequenses for Non-Filing of Balance Sheet in XBRL?

Defaulting PartyPenalty Imposed
CompanyRs. 1000 for every day of default subject to maximum of Rs. 10 lakhs
Managing Director/ Chief Financial Officer
In case of the absence of the Managing Director/ Chief Financial Officer – Any other Director who the Board assigns the responsibility
In case of the absence of any such Director – All directors of the company
Rs. 1 lakh + Rs. 100 per day for continuing default subject to

Penalty for Delayed XBRL Filing of Balance Sheet

Compliance reporting in XBRL mode is a professionally managed procedure that sometimes could not be completed in a 30 days’ time span as provided under the companies act, 2013 therefore company has to bear the penalty for delay in financial reporting of XBRL in AOC-4 XBRL.

Period of DelayAdditional fee payable
Delay 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 annual general meeting)Rs. 100 per day

Set of Documents Required for Filing of Balance Sheet in XBRL.

XBRL instance document is required to be prepared as per MCA Taxonomy (I-GAAP / IND-AS). According to MCA Taxonomy, a complete set of Annual Report is required to be filed in XBRL format. Separate instance documents are to be prepared for consolidated and standalone reports. Major components of the Annual report are noted below:

  • Balance Sheet
  • Profit and Loss Statement
  • Cash Flow Statement (Direct or Indirect)
  • Schedules & Notes to Balance Sheet and Profit and Loss Statement
  • Significant Accounting Policies
  • Statement of Change in Equity
  • Independent Audit Report with annexures thereto
  • Director or Board Report with annexures thereto

Procedure of XBRL Filing of Balance Sheet to ROC.

The process for the creation and filing of Financial Statements in XBRL mode is as under:

Step 1: Creation of XBRL instance document.

Step 2: Download XBRL validation tool from the MCA portal.

Step 3: Use the tool to validate the instance document.

Step 4: Perform pre-scrutiny of the validated instance document through the tool.

Step 5: Attach instance document to the Form AOC-4 XBRL.

Step 6: Submitting Form AOC-4 XBRL on the MCA portal.

Applicability of Filing Cost Audit Report in XBRL to ROC.

A company required to furnish cost audit report and other documents to the Central Government under sub-section (6) of section 148 of the Act and rules made thereunder, shall file such report and other documents using the XBRL taxonomy given in Annexure-III for the financial years commencing on or after 1st April, 2014 in e-Form CRA-4 specified under the Companies (Cost Records and Audit) Rules, 2014.

Who will Certify Balance Sheet filed in AOC 4 XBRL?

Any practicing professional whether a company secretary, cost accountant or chartered accountant in practice can certify the E-form AOC -4 XBRL for filing the same at MCA with the requisite fee.

Ending Notes:  If a company voluntary wishes to file its financial statements in XBRL mode the there is no restriction as per companies act to file the same in AOC 4 XBRL as per their voluntary action, for a better presentation of Annual financial it is always advisable to take professional guidance before filing regulatory compliances of the company.

By csannusharma

Annu Sharma is a qualified Company Secretary as well as a Certified CSR Professional and a Law graduate with rich experience of 4 years in secretarial, corporate legal affairs, management and corporate governance; in different industry sectors. Featured on Tax Guru.In, Compliance Calendar LLP and