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Applicability of XBRL Filing and Exemptions

xbrl applicability mca

Applicability of XBRL Filing under Companies Act, 2013 with the provisions and rules thereunder mandate companies to file compulsory documents, including financial statements and returns. 

XBRL is an extension of Extensive Markup Language, also known as XML that is the common language for sharing interactive data between entities as well as on the web.

It provides effective management of business information through the system software. XBRL help in identify the mappings to items of data which enables them to process and analyse. 

XBRL mapping provides companies with a digital standard method to prepare, publish, extract, and exchange financial statements of public companies. It improves the processes involved in fetching, storing, and assembling business data. 

What is the Applicability of XBRL Filing?

According to the provisions of Companies Act, 2013 read with Rules, 2015, the following class of companies shall file their financial statements with the Registrar in e-form AOC-4 XBRL as per Annexure I:-

1. All listed Companies and their Indian Subsidiaries;

2. All Companies with paid up capital of Rs. 5 crores or above;

3. All Companies having turnover of Rs. 100 crores or above;

4. All Companies are required to prepare their financial statements by Companies (Indian Accounting Standard) Rules, 2015.

Provided that companies already preparing their financial statements under Companies (Indian Accounting Standards) Rules, 2015 shall file the statements using the taxonomy provided in Annexures-II A.


The following are companies exempted or non-applicability of XBRL Filing: –

1. Non-Banking Financial Companies

2. Insurance Companies

3. Banking Companies

4. Housing Finance Companies

XBRL Applicability Section

AOC-4 (XBRL) applicability section 137 of Companies Act, 2013. It provides the classes of companies required to file financial statements in XBRL for the given financial year. The implementation of XBRL for mentioned companies under the Act helps in the transparent filing of information and also increases the trust among investors.

Cost XBRL Applicability

A company is required to furnish a cost audit report and other required documents to the Central Government under section of Companies Act, 2013 read with Companies (Cost Records and Audit) Rules, 2014. Applicability of XBRL Filing of 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.

XBRL Applicability for Private Companies

Applicability of XBRL filing for private companies is optional. XBRL is used by the regulators for reporting. The private companies can also take the benefit of the same. XBRL is more used when there are many heterogeneous ERP systems in the company.

What’s XBRL (eXtensible Business Reporting Language)?

In today’s time, XBRL is used around the world across more than 50 countries. XBRL replaces paper-based reports with efficient, improved accuracy and reliable for those involved in providing financial information. XBRL is the open international standard for digital business reporting, the applicability of XBRL filing is managed by a global not-for-profit is XBRL International.

How does XBRL Work?

XBRL works using the 2 documents: –

1. Taxonomy and

2. Instance document

Taxonomy is defined in terms of the elements and relationship between them based on the regulatory requirements. XBRL applicability can be with the help of taxonomy given by the regulators and businesses have to translate their reports to create an appropriate XBRL instance document. The Applicability of XBRL Filing in the process of mapping is matching the terms described by the company to the appropriate element of the taxonomy. In addition to assigning an XBRL tag from taxonomy further details of the units of measurement, the period of data, and the size of reporting should be mentioned in the instance document.

Documents Required for XBRL Filing in India

In accordance with the Ministry of Corporate Affairs, a complete set of Annual reports is required to be filled in XBRL format. A separate instance documents are required to be prepared for standalone and consolidated financial statements. These are the list of documents required for the Applicability of XBRL Filing as under:

  • Balance Sheet
  • Profit and Loss Statement
  • Cash Flow Statement
  • Schedules of Balance sheet and Profit and Loss Statement
  • Notes to accounts
  • Significant accounting policies
  • Board Report with AOC-1 and AOC-2
  • Reports from the Independent Auditor including the CARO report with annexures thereto
  • Corporate Governance Report
  • Corporate Social Responsibility Report, if any
  • Significant Accounting Policies

XBRL Filing Due Date

The company shall file Form AOC-4 (XBRL) within 30 days from the conclusion of the Annual General Meeting.

If the financial statements are not adopted in Annual General Meeting, then the applicability of XBRL filing in case of the unadopted financial statement shall be filled or when the financial statements are adopted then it shall be filled. The filing of Compliance report (along with annexure), certified by cost auditor should be filled within 180 days from the end of the financial year.

Online XBRL will assist you in the whole process along with its professional team. Online XBRL is renowned  XBRL applicability platform by different bodies like MCA and ICAI. 

Advantages of XBRL Filing

XBRL provides various advantages for business analysis and reporting:

  • Better reporting method
  • Automated data collection
  • Reliable and precise
  • Cost-effective
  • Time-saving process
  • Improved Analytical process
  • Safe in data handling
  • Helps in better decision making
  • Used to communicate non-financial data
  • Reduces the manual data entry

It is important to note that the applicability of XBRL filing can be used by all types of organizations. The XBRL is used for easy transmission of data between businesses. XBRL gives both the producers and users of financial information shift resources away from tiredly manual processes that traditionally involve long-winded comparison, assembly, and the re-entry of data.

Closure Now… 

Therefore, XBRL is a formal method of digital reporting that allows information to be tagged into machine-readable formats. Thus, it can also provide various benefits for regulators and entities and their reporting procedures, XBRL is becoming the sole technology for reporting electronically worldwide.

If the copy of financial statements which are under the applicability of XBRL filing is not filed to RoC within the time limit:

Penalty for Company: Rs. ten thousand and if default continues, penalty of one hundred rupees for each day to a maximum of two lakh rupees.

Penalty for Directors: Rs. ten thousand and if default continues, penalty of one hundred rupees for each day after the first day to a maximum of fifty thousand rupees.