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Developments on XBRL Adoption for Filing by Indian Companies

1. Developments on XBRL Adoption for Filing by Indian Companies. India’s First Mission Mode e-Governance Project Under National eGovernance Programme. Presented by : Pramod Sudhakar ,Special Secretary Ministry of Corporate Affairs Government of India.

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Developments on XBRL Adoption for Filing by Indian Companies

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  1. 1 Developments on XBRL Adoption for Filing by Indian Companies India’s First Mission Mode e-Governance Project Under National eGovernance Programme Presented by : Pramod Sudhakar ,Special Secretary Ministry of Corporate Affairs Government of India

  2. Ministry of Corporate Affairs (MCA) - Overview Business Areas Size • Administration of Companies Act 1956 • New Companies Registration • Statutory filing • Charge registration • Specialized Services • Public Inspection of Documents and Artifacts • Certified Copies • Investor Protection Services • Legislation of companies act 1956 • 20 Registrar of Companies offices across the country • More than 60 million documents stored in the repository of registrar of companies • Regional Directorate offices located in six zones – • Noida, Mumbai, Chennai, Kolkata, Ahmedabad and Guwahati • Head Quarter located in New Delhi • Total Number of employees : 1,400 • Total number of corporate handled :>700,000 • MCA is concerned with the implementation of the Companies Act 1956 • Regulatory control over professional bodies like Institute of Charted Accountants of India, Institute of Company Secretaries of India and Institute of Cost And Works Accountants of India

  3. Ensuring Speed and Certainty in Service fulfillment Goals • Business • Registration of new companies from days to hours • Public • OnlineavailabilityofMinistryon a 24*7*365 basis • Banks and FIs • Easy registration and verification of charges from anywhere in the country • Government • Effective Compliance management & transparency • Employees • Environment conducive to promote efficiency and effectiveness 3

  4. Scenario : Pre MCA21 • 600,000 companies • Physical appearance at ROC – only way to interact • At least 350,000 company representatives visit ROC offices; mostly one office per state • Payment modes : by cash or DD only • Average of 50 sheets/company /year • Approx. 60 million sheets of paper in files • Charge Registrations : 100,000/year • Unmanageable situations during peak filing period – Sept & Oct • Paper overload does not permit other value adding activities • Information availability to stake holders – time consuming and inaccurate Paper Repository MCA has the most authentic repository of all corporate data from inception to liquidation

  5. The Transformation Radical Improvements Secure, Interoperable Government Functions - • Ministry of Corporate Affairs available to the stakeholders on 24*7*365 through the MCA portal - www.mca.gov.in • Any where any time filing through MCA portal • More access points – 53 Registrar’s Front offices located across India • Multiple payment options including electronic payments – credit card, internet banking • Digital signature based governance – ensures validity of documents in court of law • Unique identification of companies using Company Identification Number (CIN) • Migration of 45 million historical documents into electronic repository • Electronic workflow driven paperless back office for faster and easier processing One of the largest transaction based system implementation In the Government of India

  6. Benefits of MCA21 BENEFITS FOR GOVERNMENT BENEFITS FOR PUBLIC • Service fulfillment to business and other stakeholders • Foundation laid for joined up services • Business eco-systems made attractive for new investors • Ready availability of information for other Govt. organizations. • E-Stamp Duty, easy revenue collection & sharing process . • Convenient and instant access to public records of corporate sector for numerous years • Simple and uniform procedures with regards to: • Access of public records • Obtaining certified copies • Saves time and cost BENEFITS FOR FINANCIAL INSTITUTIONS BENEFITS FOR BUSINESS • Online access to information relating to registration of charge • Enables effective decisions related to credit evaluations • Reduces occurrence of future NPA’s(Non-performing Assets) • Simple hassle free interaction with Government • Uniform ,single point of filing all compliance related information without location constraints • Latest information available on-line on the MCA portal • No special technology investments to comply with the new e-filing requirements • Multiple and convenient payment options including on-line payment through MCA portal • Payment of stamp duty

  7. Service Time Improvements

  8. XBRL in India • XBRL India facilitated by the Institute of Chartered Accountants of India (ICAI) Taxonomies in India • Indian Generally Accepted Accounting Principles (GAAP) - Under Last Phase of Finalization : • Commercial & Industrial Companies • Banking • Non-Banking Financial Companies and Insurance companies’ – under preparation • RBI (Already in Use) • Basel II • Liquidity Returns (Form A) • Currency Position (Gaps Positions and Balances)

  9. Proposed Approach - MCA21 • Indian Generally Accepted Accounting Principles (GAAP) Taxonomy to be acknowledged by XBRL International • Ministry of Corporate Affairs (MCA) to define scope of XBRL filing. The initial deployment can be annual filing of Annual Report & Balance Sheet for industrial and commercial companies • In subsequent phases, it can extend to other types of companies and to areas where the information is currently not available in eForms but in attachment in unstructured format such as Cost Audit Report, Prospectus, Charge agreement • Publication of MCA taxonomy

  10. Challenges in MCA21 to be addressed by XBRL Annual Returns are submitted as scanned images in MCA21. This has following challenges: • Inconvenience to users and requires large storage space • Inability to quickly and automatically identify errors in filing • Inability to Validate, Analyze, and Compare data

  11. Benefits of Implementation of XBRL in MCA21 Moving towards paperless filings 2. Enhanced data mining of corporate financial data Standardized reporting of corporate data across all entities 4. Ensures accuracy and uniformity in data reporting 5. Ease of Exchange of data with other government departments 6. Enhanced experience to the stake-holder due to improved response time as the attachment size is considerably reduced

  12. THANK YOUA GREEN PROJECTSAVES 50 MILLION PAGES EACH YEAR !

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